Medbox partners with Bio-Tech Medical on marijuana distribution system - Boston Business Journal

Medbox partners with Bio-Tech Medical on marijuana distribution system




By Maureen McCarthy, Special to Mass High Tech

Medbox Inc. (OTC Markets: MDBX) of Calif., a developer of medical marijuana dispensing systems, announced it has entered into a licensing agreement and acquired an equity stake in Bio-Tech Medical Software Inc. (Bio-Tech) of Florida.
The newly formed partnership, according to both companies, will create a prescription drug and medical marijuana distribution system. Bio-Tech brings two distinct, patented technologies to the table: BioTrackTHC - a marijuana “seed-to-sale” tracking system and BioScriptRx, a HIPAA compliant, SAS70 approved biometric e-prescribing technology dedicated to preventing “doctor shopping” via pharmacies and pain management clinics.
According to Medbox CEO Dr. Bruce Bedrick, the Bio-Tech’s patents are “tremendously strong and will ultimately help Medbox save lives."
“(Bio-Tech) is essentially in lock step with us in both industries - the medical marijuana and traditional pharmaceutical industry in healthcare,” Bedrick told Mass High Tech.
“They also further our goal to be the safest, most secure and most convenient and legally compliant way to dispense prescription pharmaceuticals,” he said.
The cash and stock transaction will allow Medbox, which has offices in Massachusetts, Connecticut and five other cities in the U.S. and Canada, to record earnings of 25 percent at a minimum and 50 percent at a maximum “depending on Medbox’s level of involvement in the revenue generating deals for Bio-Tech,” according to the company.
The transaction includes a restricted stock component with a mandatory 24 month lock-up period. In March 2013 and following the filing of its Form 10 with the SEC, Medbox will take possession of the ownership stake in Bio-Tech.
Medbox Inc. is headquartered in West Hollywood, Calif., and provides patented systems, software and consulting services to pharmacies, dispensaries, urgent care centers, drug rehab clinics, hospitals, prison systems, hospice facilities, and medical groups worldwide.
“Our company is growing by leaps and bounds and as a result can target companies that are emerging and have relevance for mutually beneficial partnerships,” Bedrick said. “Bringing value to our company and its shareholders is our number one priority.”
Bio-Tech Medical was founded in 2007 and is a creator of a biometric, real-time, anonymous prescription monitoring database designed to protect patient privacy and law enforcement intelligence.
In a statement, Bio-Tech CEO, Dr. Steven Siegel said the Medbox partnership will benefit both companies and is in line with their collective goals and initiatives.
“Medbox is the perfect partner for both of our major product lines. Their patented technology, goals, and proven track record are consummate with our own and we look forward to a long-term, mutually beneficial relationship,” Siegel said.
In recent months, Medbox has experienced staggering stock gains and losses. In November 2012, Medbox stock spiked to a record high of $215 per share - a leap prompted when Massachusetts joined 18 other states dispensing medical marijuana to those suffering from chronic illnesses.
During the same month and in sharp contrast, stocks plummeted to $20 per share.
Since then, Medbox stock rebounded to $100 a share but continues to hover around $45-$50 per share. Medbox stocks opened at $48 per share at Thursday’s open.