Last month I purchased MDBX (medbox) a marijuana related company that works on medical distribution products and other related products. I purchased the stock based on the idea that with the impending legalization in Co and other positive press within the industry that a short term bump was possible. It wasnt a sizable position in my portfolio. It is and was a volatile stock but not a penny stock and my purchase price was around 15 a share..

My question is regarding some stock situations that are occurring within the last few weeks and coming weeks.. The stock is currently trading at around 45 a share but that is down 12% for the day.. I am not a trader who follows my ind. stocks on a daily basis because I do not have the time to devote to such an endeavor.

The company recently announced a 100% common dividend in the form of restricted stock. The whole situation is very foreign to me as to the most recent press release today on when I can sell both the stock while still being eligible and when I could sell the restricted stock once issued.

If anybody has any experience with such a situation please feel free to dump some info.. Thanks

Press release below

quote:
Medbox, Inc. (OTC Markets: MDBX) (www.medboxinc.com), a leader in providing industry specific consulting services and patented systems to the medical and retail industries, announced that it is in the final stages of FINRA approval for the issuance of the 100% common dividend in the form of restricted stock.

Company executives state that they have been inundated with shareholder inquires regarding the procedure for determining whether or not they qualify to receive the dividend. Based on SEC guidance on the subject found here: LINK , the following excerpt seems to apply:

"If you sell your stock before the ex-dividend date, you also are selling away your right to the stock dividend. Your sale includes an obligation to deliver any shares acquired as a result of the dividend to the buyer of your shares, since the seller will receive an I.O.U. or "due bill" from his or her broker for the additional shares. Thus, it is important to remember that the day you can sell your shares without being obligated to deliver the additional shares is not the first business day after the record date, but usually is the first business day after the stock dividend is paid."

The company will be updating the public in a press release once the stock dividend is issued, which it anticipates will occur within the next 10 days.