California: Medbox Applauds Warning On Marijuana Stock Scams
By Steve Elliott
Medbox, Inc., which provides consulting services and patented systems to the medical and retail marijuana industries, has come out in support of a statement issued this week by the Financial Industry Regulatory Authority (FINRA), warning about possible stock scams in the medical marijuana industry.
"Medical marijuana is legal in almost 20 states, and recreational use of the drug was recently legalized in two states," the report stated. "As a result, the cannabis business has been getting a lot of attention - including the attention of scammers. Like many investment scams, pitches for marijuana stocks may arrive in a variety of ways - from faxes to email or text message invitations, to webinars, infomercials, tweets or blog posts."
Medbox, which provides software and systems to assist with compliance, increase transparency and accountability, and enhance security of medicines of all types, said it is in support of FINRA's statements and, for good measure, has taken a similar stance in prior press releases.
"We are in a period that is like the Gold Rush," said Dr. Bruce Bedrick, CEO of Medbox. "Unfortunately, there are companies and individuals that prey on investors looking to enter this fast-growing market. We want these fly-by-night operations out of our industry, and support any regulatory authority in calling attention to the problem."
Bedrick said that Medbox never engages in promotions or solicitations to sell their stock. In fact, he said, the company does not even have an investor relations firm it works with and relies on media attention to organically promote the stock through genuine market interest.
"We are in this business for the long haul," Bedrick said. "Our effort in becoming the most credible marijuana ancillary services public company has paid off for Medbox and its shareholders.
"Quarter after quarter we post solid revenue numbers, have an ever expanding business model, and we are the first company in the sector with a working business model while never touching the drug itself," Bedrick said.k "We look forward to the increased scrutiny that goes along with being a fully reporting SEC company."
The company pointed out that the FINRA tips highlighted in the article are "extremely helpful" for investors to ascertain which marijuana related stocks are viable.
To read the FINRA Fraud Advisory, visit: http://www.finra.org/Investors/ProtectYourself/InvestorAlerts/FraudsAndScams/P325352