Medbox, Inc. announced signing of a term sheet with a medical marijuana research and development laboratory licensed and permitted by Health Canada. According to the terms, Medbox has been engaged in an ongoing consulting role as the lab transitions to cannabis producer and distributor. The laboratory is one of only a few allowed to cultivate and study cannabis in Canada for use in medicinal applications.

With Medbox's help, the laboratory is poised to be one of the first to have a producer and distribution license granted in the new Canadian medical cannabis market. The deal allows Medbox to benefit in the following way: Co-branding and joint development of cannabis infused formulations and products to be sold in the Canadian market, Consulting revenue to Medbox, through a wholly owned subsidiary, on all sales of medical cannabis products in the Canadian market sold by the licensed producer/distributor, Development and product placement of next generation Medbox machines that are outfitted with additional security features that will allow the equipment to act as a 'medicine vault' meeting or exceeding all specifications set forth in Canadian law as to storage of controlled substances, Expanding of Medbox's market to allow for equipment placements in doctors' offices and cultivation centers to monitor dispensing of medications to facility staff prior to reaching the end user.