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SOURCE Medbox, Inc.
Colorado Takes First Step Towards Allowing Marijuana Businesses to Access U.S. Banking System
LOS ANGELES, May 7, 2014 /PRNewswire/ -- Medbox, Inc. (OTC Markets: MDBX) (www.medbox.com), a leader in providing ancillary services to the alternative medicine industry, dispensary consulting services, and patented medicine dispensing systems to medical and retail industries, commented today on Colorado's recently passed bill, that if enacted, would lead to the first marijuana financial system in the United States.
State legislators in Colorado passed a bill on May 2, 2014 which could potentially grant access to the Federal Reserve's money transaction system. To date, 20 states and the District of Columbia have passed laws allowing the sale of medical and recreational marijuana, but its production, sale, and possession remain illegal under federal law. The misalignment of Federal and State laws has prevented the nations' banks from enabling dispensaries and other businesses in the legal marijuana industry to utilize the banking system. Colorado has now taken a first step towards alleviating this disparity and establishing a financial structure between the banking community and the marijuana industry.
The proposal calls for "cannibas credit co-ops" to be governed by the state's financial services commissioner in order to provide marijuana retailers a means by which to transact business and provide financial services to its members through cooperative banking. The proposal, passed on a preliminary vote, will be formally voted on this week.
Due to federal laws and the current unwillingness by banks to conduct business with dispensary owners, most transactions rely on cash payments, making the business owners targets for crime while inhibiting the state's ability to track and tax sales.
"We strongly commend the state of Colorado for paving the way for marijuana retailers to be able to transact their business through a structured financial system in the same manner as other businesses," commented Dr. Bruce Bedrick, chief executive officer of Medbox, Inc. "We are pleased to see the legislators take such a progressive step towards supporting dispensary operators, an industry that Medbox directly serves. The financial structure being established in Colorado dovetails nicely with two of our latest initiatives, specifically our Medbox Merchant Services, Inc. and Medbox Armored Transport, Inc. subsidiaries. Medbox Merchant Services specializes in banking transactions with prepaid debit cards, convenience checks and cash depository needs for operators. Medbox Armored Transport is focused on armored car transport of cash from dispensaries to participating banks."
"As this industry continues to evolve and progress, Medbox is at the forefront of designing and delivering solutions so retailers can efficiently serve their customers in a safe environment while complying with local and federal regulations," stated Dr. Bedrick. "A financially sound and solid banking infrastructure is yet another step towards legitimizing the marijuana industry."
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. Headquartered in Los Angeles, Medbox, through its wholly owned subsidiary, Medicine Dispensing Systems, offers their patented systems, software and consulting services to pharmacies, alternative medicine dispensaries and local governments in the U.S. In addition, through its wholly owned subsidiary, Vaporfection International, Inc. (www.vaporfection.com), the company offers an industry award winning medical vaporizer product. Medbox, through its newly established subsidiaries, also engages in the following ancillary services catered to the alternative medicine industry: merchant services and armored transport for cash deposits, cannabidiol R&D, real estate acquisitions and subsequent lease programs to alternative medicine dispensaries, and alternative medicine dispensary management services.
Forward-Looking Statements: The statements in this press release 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 as well as political and economic conditions present within the industry. We do not take any obligation to update any forward-looking statement to reflect events or developments after a forward-looking statement was made.
Medbox, Inc. is a publicly traded company, and is quoted on the OTC Markets, ticker symbol MDBX.
For more information on Medbox, please contact (800) 762-1452 or go online to: http://www.medbox.com.
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