Problems at GreenBox POS (GBOX)
Problems at GreenBox POS (GBOX)
Problems at GreenBox POS (GBOX)
GreenBox POS (NASDAQ: GBOX — $563 million) describes itself as a blockchain-enabled next-generation payment processor. In reality, the company has questionable management, self-dealing, numerous lawsuits, and subcontracts work for the cannabis industry. GreenBox’s audit chairman was the CEO of a company that had its registration revoked by the SEC, and GreenBox’s co-founder and chairman filed for bankruptcy and paid a multi-million-dollar arbitration settlement amidst allegations of fraud. The company uplisted from OTC to the NASDAQ in February and its stock is up ~2,500% over the last year.
In its annual report, GreenBox describes itself as “a technology company that develops, markets and sells innovative blockchain-based payment solutions…” GreenBox’s investor presentation is equally enigmatic:
In reality, GreenBox partners with high-risk payment processors, mainly in the cannabis industry. Exhibit 10.5 of the company’s 10-K is …