HOLLYWOOD, Calif., Feb. 13, 2013 /PRNewswire/ — Medbox, Inc. (OTC Markets: MDBX) (www.medboxinc.com), announced that it has acquired an equity stake in and entered into a licensing agreement with Bio-Tech Medical Software, Inc. (Bio-Tech). The agreements allow for Medbox to record earnings of 25% at a minimum and 50% at a maximum depending on Medbox’s level of involvement in the revenue generating deals for Bio-Tech. Bio-Tech is an innovative corporation that has developed BioTrackTHC, the nation’s only true marijuana seed-to-sale tracking system as well as the HIPAA compliant, SAS70 approved biometric e-prescribing technology, BioScriptRx, that can prevent “doctor shopping” in pharmacies and pain management clinics nationwide. Their patented technology is also capable of tracking Pseudoephedrine, an OTC medication commonly purchased for the explicit purpose of methamphetamine production. The industry leading patents that are the subject of the agreements are U.S. Patent numbers 8,086,470 and 8,335,697.
The transaction involved a combination of cash and stock wherein the restricted stock component has a mandatory 24 month lock-up period. Medbox will take possession of the ownership stake in Bio-Tech, which shall remain in escrow, after its Form 10 is filed with the SEC in early March 2013.
“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,” stated Dr. Bruce Bedrick, CEO of Medbox. “Bringing value to our company and its shareholders is our number one priority.”
Prior to this transaction, Medbox provided patented tracking and dispensing technologies at the point of sale at licensed marijuana dispensaries. Now Medbox technologies can be used to track every aspect of marijuana cultivation, inventory management, all the way to the point of dispensing. The company reports that this was a missing piece of the puzzle that will allow for a complete all-in-one solution the company can market to operators in medical and recreational marijuana states. This powerful compliance tool will also be showcased for educational and demonstration purposes for state officials looking to learn how to implement and track state adopted medical and recreational marijuana programs in their respective states.
Bio-Tech has been in business since 2007 and has been involved with multiple state bills in both Florida and Colorado. The company also has contacts in additional states that they will continue to tap in pursuit of further legislative opportunities. Their flagship marijuana tracking system, BioTrackTHC, has been in production use for over two years and has been featured in many news segments, including 60 minutes. BioScriptRx was initially piloted in 2009 as a controlled substance tracking platform, but has since expanded to include pseudoephedrine tracking and biometric e-prescribing. The company’s CEO, Dr. Steven Siegel, said “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.”
According to the Centers for Disease Control and Prevention, prescription pill abuse is a national epidemic. Officials in Pennsylvania are moving quickly to integrate biometric means of reducing prescription abuse and fraud. Last year, New York signed the I-STOP law that requires real-time monitoring of prescriptions and electronic distribution of prescription pills. A number of other states are also looking for means of controlling the epidemic.
“This is the future of prescription drug regulation. We believe it is only a matter of time before every state adopts this technology for the regulation of Schedule II drugs and pseudoephedrine,” says Dr. Bedrick. “We believe the combination of Bio-Tech software and Medbox hardware can go a long way towards stopping prescription drug abuse from coast to coast.”
A summary of the patents that are an integral part of the Medbox & Bio-Tech Medical Software transaction are as follows:
US Patents: 8,086,470 & 8,335,697: A system and method for a matching system that cross-references patients anonymously with doctors and pharmacies. The invention uses patient-unique biometrics, such as fingerprinting, retinal scanning, or another such unique identifier, for patient identification and verification without revealing a patient’s name or other personal information. The system tracks patient prescriptions and produces alerts to indicate potential problems, such as drug interactions or possible fraudulent behavior. The system utilizes the biometric data of the prescribing physician as authorization of the prescription. The system can produce a traceable paper trail, for investigation or prosecution, and protects the medical industry, patients, and the public from the consequences of doctor shopping.
About Medbox, Inc.:
Medbox is a leader in the development, sales and service of automated, biometrically controlled dispensing and storage systems for medicine and merchandise. Medbox has offices throughout the world, including New York, Arizona, Connecticut, Massachusetts, Tokyo, London and Toronto, and has their corporate headquarters in Los Angeles.
Medbox provides their patented systems, software and consulting services to pharmacies, dispensaries, urgent care centers, drug rehab clinics, hospitals, prison systems, hospice facilities, and medical groups worldwide.
Medbox, Inc. is a publicly traded company, and is quoted on the OTC Markets, ticker symbol MDBX.
For more information on Medbox, please contact the Medbox Investor Relations Department at (800) 762-1452 or go online to www.medboxinc.com.
Forward-Looking Statements: The statements in this press release regarding state adoption of technology similar to that offered by Medbox and Bio-Tech Medical Software constitute forward-looking statements within the meaning of federal securities laws. Such statements are based on our current beliefs and expectations and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, such forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Potential risks and uncertainties include, but are not limited to, technical advances in the industry, political conditions and economic conditions in the states considering such legislation. We do not take any obligation to update any forward-looking statement to reflect events or developments after a forward-looking statement was made.