Medbox sells $175,000 more of convertibles in $7.75 million placement

Company also adjusts conversion price of debentures for a second time

By Devika Patel

Knoxville, Tenn., May 7 – Medbox, Inc. sold another $175,000 of convertible debentures as part of a $7.75 million private placement on April 24, according to an 8-K filed Thursday with the Securities and Exchange Commission. It also modified the notes’ conversion price. The company had previously amended the conversion price on March 13.

The company raised $3 million in three tranches in July, $1 million on Aug. 25, 2014, $500,000 on Sept. 24, 2014 and $250,000 on Nov. 24, 2014. On Jan. 30, Medbox agreed to issue another $1.8 million of convertibles in seven tranches. On March 27, it agreed to sell another $1.2 million of debentures. It sold $150,000 of debentures on March, 13, March 16 and March 20.

The conversion price will now be the lesser of $0.88 or 51% of the lowest volume-weighted average price of the stock for the 40 trading days preceding the conversion.

The conversion price was originally set at the lesser of $5.00 or 51% of the lowest volume-weighted average price of the stock for the 20 trading days preceding the conversion.

On March 13, the conversion price of the convertibles was modified to the lesser of $1.83 or 51% of the lowest volume-weighted average price of the stock for the 40 trading days preceding the conversion.

The company will pay the investors a 5% fee.

The West Hollywood, Calif., company offers a machine that dispenses medication to individuals based on biometric identification.

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