Despite a storm of press releases in March, Tranzbyte Corp. (OTCMKTS:ERBB, ERBB message board) somehow failed to post an official public announcement for the unveiling of its ZaZZZ vending machine that took place over the weekend. In yesterday’s session ERBB opened with a significant gap up but it was a race for the bottom from there and the ticker ended trading 5.5% in the red.
Even though ERBB warmed up the public through a number press announcements related to the unveiling of the ZaZZZ vending maching coming in early 2014, the company did not put up any official PR on Monday to celebrate the Saturday unveiling. The most detailed report of the machine’s first public appearance was published by NPR on Saturday.
The news was followed by sector competitor Medbox, Inc. (OTCMKTS:MDBX) publishing PR that stated ERBB’s product ‘may violate (a MDBX) federal patent’. The MDBX release states that the company ‘supports a ban’ on pot vending machines and differentiates its own machines that are operated by dispensary employees and are behind-the-counter from ERBB’s approach to using ZaZZZ as a ‘weed ATM’, as per MDBX’s description. Additionally, Medbox hinted at ERBB is among those ‘unregulated pink-sheet companies looking to hype their stock’, even though MDBX itself was a pink-sheet just a few weeks ago.
The NPR article concerning the Colorado unveiling of ZaZZZ mentions a couple of things that may raise a few eyebrows. First of all, the first model of ZaZZZ will be selling ‘snacks and other items’, non-specific as that may sound. Additionally, the machines unveiled ‘will not be taking medical cards’, but the company expressed its readiness to ‘integrate’. This comes padded with the promise of upgrading, optimizing and improving the machines on a regular basis, but may have fallen a little short of traders’ expectations.
It remains to be seen whether the MDBX has any real grounds to escalate the patent situation beyond a biting press release. Meanwhile, ERBB longs will be keeping their fingers crossed that the company manages to pull through with its ZaZZZ project despite a somewhat underwhelming unveiling event.
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