Notis Global Inc. (fka NGBL)

[loanranger]

What kind of answer is this?

From the "Shareholder Due Diligence Q&A Section on the Company's Website":

Question: “In company filings it shows that as of 3/24/14 Vincent Mehdizadeh, through his holding companies, PVMI and Vincent Chase, owned 16,238,940 shares but at 12/31/13, filings indicate that he owned 17,882,240 shares. The difference is 1,643,000. What explains the difference in share count?”

MDBX: As the majority shareholder and founder of Medbox, Mr. Mehdizadeh undertook efforts to attract talent to the board and executive management team for the benefit of the company and its shareholders. Mr. Mehdizadeh used his personal shares over the last few years in many ways to directly and indirectly benefit the company. As a non-reporting pink-sheet company during the period in time referenced, Mr. Mehdizadeh had no obligation to document private share sales/transfers. However, he did voluntarily disclose his ownership in quarterly reports filed with OTC Markets as well as registration statements filed with the Securities and Exchange Commission. Now that Medbox is an SEC filer, Mr. Mehdizadeh is required to file Form 4’s every time there is a change in his ownership.



The question isn't about "over the last few years".....it's about the first quarter of this year and it involves shares worth MANY millions of dollars (closing prices for the period in question ranged from $24.70 to $73.50....1,643,000 times any numbers in between them is MANY millions).
In spite of the scope of the dollars involved, the answer provided is very vague. There's a suggestion that shares may have been personally issued to attract directors and executives and indeed one director and one officer were added, both of whom now have the obligation to file Form 3's reflecting their holdings....it will be interesting to see what they are and how much of the 1,643,000 distributed shares they account for. I guess when we're told that "Mr. Mehdizadeh had no obligation to document private share sales" we might conclude that some of those could have occurred.

This statement appears to be false:
"However, he did voluntarily disclose his ownership in quarterly reports filed with OTC Markets as well as registration statements filed with the Securities and Exchange Commission."
During the period in question there were no quarterly reports filed. In the latest quarterly report (Q3 of 2013) and registration statement his officer/director position obligated him to provide his holdings...there was nothing voluntary about it.


"Medbox, Inc. Announces Creation of a Shareholder Due Diligence Q&A Section on the Company's Website"

But if that section can't be relied upon to be totally forthcoming and accurate, it's not terribly valuable. That said, Mr. Mehdizadeh is perfectly correct. Up until March 24th or thereabouts he apparently had no obligation to report his share transactions, whether they totaled sums in excess of 30¢ or $30,000,000. He doesn't have to answer the question, but he shouldn't expect the answer he provided to make it go away.