Medbox Says Majority Stockholder Cancels Written Consent To Remove Board

(RTTNews) - Medbox Inc. (MDBX) said that a group of stockholders attempting to appoint successor directors has withdrawn and cancelled its proposed stockholder consent. The group of stockholders has entered into a voting agreement with Medbox to refrain from attempting to remove any current members of the board for a period of twelve months.

As part of the agreement, Medbox has dismissed with prejudice a complaint filed in Los Angeles Superior Court against the stockholder group challenging the effectiveness of the written consent action. In addition, one or more members of the board of Medbox will periodically discuss with Vincent Mehdizadeh, the company's largest stockholder, matters of interest or concern to him during the term of the voting agreement.

Under the agreement, Mehdizadeh and his affiliated stockholders may on or before January 25, 2015, present a term sheet to the company from an accredited investor to invest in not less than $1 million in restricted common stock of the company on terms as reasonably agreed to by the company's board.

In addition, either as part of the closing of the private placement or otherwise at Mehdizadeh's request, Mehdizadeh shall have the right to appoint a person nominated by himself with industry experience, and reasonably acceptable to the board, as the fifth director of the company.