Medical security device maker Medbox Inc (OTCMKTS:MDBX) released a statement earlier today announcing the appointment of Netflix, Inc. (NASDAQ:NFLX) co-founder Mitch Lowe to the company’s board of directors, effective immediately. Lowe is the secure device manufacturer’s first independent director, and will assist in areas including strategy development and implementation, executive recruiting and corporate governance.
Medbox Inc (OTCMKTS:MDBX) produces patented systems that dispense medications. The secure devices are designed for uses in hospitals, pharmacies and nursing homes to control access to prescription medications. The company has been in business for a number of years, but went public in March 2010.
“Mitch Lowe has been a groundbreaking leader in the home entertainment and tech industries since the 1980s when he started Video Droid, a rental movie vending machine and store,” said Vincent Mehdizadeh, Founder and Board Chairman at Medbox Inc (OTCMKTS:MDBX). “He has significant industry background, strategic expertise, and long-term relationships. We look forward to tapping into his skills and experience as a proven executive who has built brand-name companies as we position Medbox for growth in our large addressable markets. While Medbox offers solutions that are not comparable to kiosks per se, the fact that he has successfully directed large companies roll out cutting-edge technology adds immense value to our company. We will also take advantage of his corporate governance experience as we grow and evolve as a public company.”
Questions about Medbox
A number of analysts have questioned Medbox Inc (OTCMKTS:MDBX)’s business model and management integrity in the past. Citron Research recently issued an investment report detailing the dubious legal histories of much of Medbox’s management and also highlighting a great deal of self-generated hype and hyperbole regarding the companies products and earnings potential. Citron points out the company is highly overvalued with a current market cap of $1 billion, and places a Sell recommendation on the stock.