Medbox plans $1.8 million private placement of convertible debentures

Company also sells convertible debentures and notes to board members

By Devika Patel

Knoxville, Tenn., Feb. 2 – Medbox, Inc. said it will sell $1.8 million of convertible debentures in a private placement. The company has already raised $200,000.

Two of Medbox’s board members also invested in the company. Chairman Ned L. Siegel bought two subordinated convertible promissory notes of $50,000 each on Jan. 5 and Jan. 30. The 8% convertibles have a three-year term. In addition, board member Mitchell Lowe bought a $50,000 three-year 8% subordinated convertible promissory note on Feb. 2. This note was sold with a warrant for common stock.

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

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