LOS ANGELES, March 5, 2015 (GLOBE NEWSWIRE) -- P. Vincent Mehdizadeh, founder and current majority shareholder of Medbox, Inc. (OTCQB:MDBX) commented on executing a deal with Lizada Capital LLC, an investor in the field of legal cannabis products, that would result in the transfer of the majority of Mr. Mehdizadeh's shares of MDBX to that firm.
Under the agreement, which has six separate closings over 18 months, Lizada would purchase 22,160,000 shares, representing 2,000,000 preferred shares and 12,160,000 common shares of Medbox for upwards of $15 million. A total of $5 million of the funds have been designated for purchase of 2.5 million restricted shares of Medbox common stock, directly from Medbox, in the name of Mr. Mehdizadeh's holding company, PVM International, Inc.
"Prior to announcing the deal yesterday, the Medbox board of directors had approved the Lizada Capital LLC managing member to join the board of directors as my board appointment and also approved of that party making a substantial direct investment into the company for the purchase of restricted common stock," stated Vincent Mehdizadeh, founder and current majority shareholder of Medbox. "I also discussed the possibility of having Lizada step into my shoes as the majority shareholder of the company and shared the potential deal points with the Medbox board of directors and their attorneys weeks before a final agreement was reached with Lizada. While Medbox is not a direct party to this transaction, they have been in the loop and have been supportive in vetting Lizada's investment and its managing member's appointment to the Medbox board of directors. The next steps for the investment into Medbox will be signing subscription agreements with the company that will tie into each of the first 5 closings identified within the Lizada transaction. From what my attorneys and I can gather, the signing of subscription agreements with Medbox is simply a formality. I am happy to be bringing value to Medbox and its shareholders in this manner."
To view a copy of the executed agreement between the parties, please click on the link below:
http://www.otcmarkets.com/edgar/GetFilingPdf?FilingID=10537768
About P. Vincent Mehdizadeh, Founder and Majority Shareholder at Medbox, Inc.
P. Vincent Mehdizadeh founded Medbox's main subsidiary, Medicine Dispensing Systems, in February 2008. He commenced operations for that company in 2010, and in December of 2011 sold that company to what became Medbox, Inc. Mr. Mehdizadeh served as senior consultant from December 2012 until May 10, 2013 for Medbox, Inc. and then transitioned to Chief Operations Officer and Board Chairman for Medbox, Inc. through May of 2014. Mr. Mehdizadeh was responsible for creating the two main patents behind the company's technology, helping to assemble the talented board/management team at Medbox, and also developing the concept behind the business models driving revenue for the company. Mr. Mehdizadeh was responsible for funding and the creation of the Marijuana Policy Project "Consume Responsibly" campaign, as well as the Americans For Safe Access "Medicate Responsibly" campaign. Mehdizadeh has donated over $2 million dollars to Americans for Safe Access (ASA), Marijuana Policy Project (MPP), Drug Policy Alliance (DPA), Law Enforcement Against Prohibition (LEAP), and St. Jude Children's Research Hospital.
About Lizada Capital LLC:
Lizada is a privately held entity formed in 2004 for the principal purpose of investing in emerging market opportunities. In 2013, following a two-year period of industry evaluation, the company started primarily focusing on the cannabis industry, Since then, Lizada has invested in public companies including GW Pharmaceuticals, AmeriCann and CannLabs and private companies, CDX, MJIC, Panther Capital, New Frontier, Noble Blends, Medicine Man Technologies, Las Vegas CannaPlex and Quigley's.