Marijuana Vending Machines Meet Need for Weed
–Cannabis Capitalism and Convenience–
As reported by Bruce Anderson and the Anderson Valley Advertiser:
In the wake of this year’s elections in which both Colorado and Washington residents voted to legalize marijuana, investors began buying up MedBox shares as quickly as they could. On Monday, MedBox shares sold for $4. By Thursday they were at $215.
MedBox is an automated medication dispenser for medical marijuana accessible with fingerprint recognition or a medical marijuana card. Using a touchscreen, patients can select up to 50 different varieties of pre-weighed medical marijuana sealed in standard medication vials. The machines do not use cash, but rather a pre-paid card that alerts the customer when the balance is low so that each purchase can be documented.
The company operates 130 dispensers and is scheduled to install 40 more before 2013.
“We believe an appropriate trading range is between $5 and $10 but, alas, the market will do what it will do,” MedBox founder Vincent Mehdizader told MarketWatch, who’s recent story on properly investing in marijuana was considered one of the reasons for the sudden interest.
The stock price then tumbled back down to $100 on Friday. That sent the company’s market cap from a respectable $45 million to a shocking $2.3 billion almost overnight — double the market capitalization of menswear retailer Jos. A. Banks Clothiers.
Mehdizader said the company was also planning to expand beyond marijuana, installing temperature controlled vending machines serving a wide-range of drugs in places as diverse as drug stores and prisons.
Somewhere between $600,000 and $700,000 worth of purchases in the company were made this week.
“We couldn’t really understand why that was happening other than that there was a high demand for stock with limited supply,” Mehdizader said. It’s possible buys were done by one hedge fund or several big buyers, with day traders also adding to the demand. Now the company is trying to find ways to protect early investors with company-owned shares should the price they bought it at drastically lower. “We don’t want those investors to have sour feelings about what happened,” Mehdizadeh said.
Marijuana investment is still considered high risk. Of nearly 3,000 dispensaries, 500 were closed or shut down by federal government in the last 12 months. MedBox has grown steadily over the last year and Mehdizadeh is confident it will continue to do so, but doubts the current feeding frenzy prices realistically reflect the company’s value.
“We feel within 10 years we could legitimately have share prices hit $215 again,” he said.
(Courtesy, the London Daily Mail)
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$2.3 billion market share? Gadzooks. MedBox reported:
”Our Company has strong national and international presence with offices in: Los Angeles, New York, Connecticut, Arizona, Toronto, London, & Tokyo.
We have been awarded United States & Canadian Patents concerning the software and hardware related to our medicine dispensing machine.
Our company’s founder has appeared in interviews with CNN, ABC News, Reuters, Associated Press, NPR, and has been featured in articles appearing in Newsweek, Los Angeles Times, and the Wall Street Journal, as well as over 30 other news agencies around the world concerning our cutting-edge products and services.”
For those enquiring minds and risk-averse investors wanting to know more, the MedBox company website is here.
What will they think of next?
(Article courtesy of Bruce Anderson and the Anderson Valley Advertiser. Images by the Humboldt Sentinel. Posted by Skippy Massey)