MassRoots: A Social Media Marijuana Company To Go Public This Week

MassRoots, one of the most popular cannabis based apps, plans to go public this week. The app will be one of the first cannabis-based businesses to go public.

MassRoots will be one of the first cannabis-related IPOs from the Securities and Exchange Commission (SEC) and will trade under the ticker symbol MSRT

In fall 2013, MassRoots raised $150,000 in seed funding from the ArcView Group. The company used those funds to grow its user base. In March 2014, it had 100,000 users and by September 2014 it had over 175,000 users.

MassRoots raised $5 million more in capital through a series A round of funding at a $5 million valuation and was rocking and rolling until they hit a huge speedbump.

Apple suspends cannabis apps from its app store

In November 2014, Apple Inc. (APPL) sent shockwaves throughout the entire cannabis industry when it banned all cannabis related apps from its app store.

The CEO of MassRoots, Isaac Dietrich said, “We were trending under social networks in the app store, and Apple came after us saying, ‘We don’t want an app for a bunch of people being high; we don’t think that type of content belongs.’ So they put in a rule that said all marijuana social networks were prohibited. For dating, anything.”

“Existing users could still use the app, we just couldn’t register new people, which killed our growth, and that would have killed the company over the long term,” Dietrich noted.

“So in January we united the cannabis industry against this policy,” he said. “Over 10,000 of our users sent personal emails to Apple saying why they loved Mass Roots, ranging from ‘I just met my husband on here’ to ‘I suffer from anxiety, I need a social support network’ to ‘I’m a Colorado resident and you are violating my right to free speech.’ A private company doesn’t have a right to tell me what app I can and can’t download on my phone.”

Marijuana organizations rallied support for MassRoots

In early 2015, Dietrich reached out to a number of marijuana organizations to support the company’s fight to be available in Apple’s app store. The ArcView Group, a marijuana investment fund, and the National Cannabis Industry Association (NCIA) wrote letters to Tim Cook arguing that his policy inhibited innovation and growth in the cannabis industry.

In late January, Apple once again changed its rules to allow marijuana social network apps back into its app store. The marijuana apps had to guarantee that their users were located in a state where medical marijuana was legal.

Where is MassRoots today?

Dietrich says MassRoots now has over 275,000 users, which is pretty good when you consider how much smaller their target market is compared to a typical social media app.

Dietrich said, “All our users are within the 23 states that have legalized medical cannabis.” So while it’s only 275,000 users, 9 out of 10 people aren’t interested in our app because they don’t consume marijuana on a regular basis. And of that 10 percent that is interested, we can only register people in just under half the country.”

SEC is allowing cannabis companies to go public

The fact that the Securities and Exchange Commission (SEC) is allowing companies directly related to the cannabis industry to go public is worth noting.

Dietrich said, “It’s interesting, because most of the time the SEC declares a registration effective after it clears the comment period. Well, since our company could be deemed as aiding and abetting an illegal activity, they reverted back to a policy that they haven’t had in place for 30 years. So basically, since the SEC didn’t object to anything that we stated after 30 days, our registration was allowed to go through. It’s actually a policy that they’ll now be applying to all marijuana-related companies.”

A turning point for the cannabis industry

This development is a major turning point for the cannabis industry because the SEC is letting cannabis- based companies to go public. MassRoots will be traded on the over-the-counter bulletin board (OTCBB) exchange. The company has generated a net loss of nearly $920,000 since its inception and plans to monetize its network after it reaches one million users. The company plans to raise more capital to reach that goal. For that reason it makes sense that MassRoots is going public.

Company Relationship Disclosure

T420 is responsible for the T420 opinions provided in this disclosure except all sources or information provided by other parties were not verified or authenticated and T420 does not undertake to confirm or substantiate or be responsible for such information provided by other parties.

Any Content posted regarding a Profiled Issuer is not a solicitation or recommendation to buy, sell or hold securities. We cannot and do not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. All information should be independently verified. We are not responsible for errors or omissions in our publications, and any opinions expressed are subject to change, without notice. We do not, nor are we under any obligation to undertake due diligence or investigation or authenticate and verify whatsoever regarding Profiled Issuers or any Content posted in relation thereto and we do not receive any verification from the Profiled Issuer regarding the Content we disseminate. Similarly, while we endeavor to facilitate the provision of quality information, we are not responsible for any loss or damages caused or alleged to have been caused by its use nor verify or authenticate or update such information.

Pursuant to an agreement between StoneBridge Partners LLC and MassRoots Inc. (MSRT) we have been hired for a period of 360 days beginning October 4, 2016 and ending April 4, 2017 to publicly disseminate information about (MSRT) including on the Website and other media including Facebook and Twitter. We are being paid “ZERO” per month (MSRT) for or were paid “50,000” shares of unrestricted or restricted common shares. We own ZERO shares of (MSRT), which we purchased in the open market. We plan to sell the “ZERO” shares of (MSRT) that we hold during the time the Website and/or Facebook and Twitter Information recommends that investors or visitors to the website purchase without further notice to you. We may buy or sell additional shares of (MSRT) in the open market at any time, including before, during or after the Website and Information, provide public dissemination of favorable Information. This contract was extended on from April 4, 2017 to October 4, 2017. We are being paid “ZERO” dollars per month or were paid “50,000” shares of restricted common shares.

This article contains forward-looking statements within the meaning of applicable securities laws. All statements that are not historical facts, including without limitation, statements regarding future estimates, plans, programs, forecasts, projections, objectives, assumptions, expectations or beliefs regarding future performance are “forward-looking statements”. Forward-looking statements can be identified by the use of words such as “expects”, “does not expect”, “is expected”, “believes”, “intends”, “anticipates”, “does not anticipate”, “believes” or variations of these words, expressions or statements, that certain actions, events or results “may”, “could”, “would”, “might” or “will be” taken, will occur or will be realized. Such forward-looking statements involve risks, uncertainties and other known and unknown factors that could cause actual results, events or developments to differ materially from the results, events or developments expected and expressed or implied in such forward-looking statements. These risks and uncertainties include, but are not limited to, dependence on obtaining and maintaining regulatory approvals, including the acquisition and renewal of federal, provincial, state, municipal, local or other licenses, and any inability to obtain all necessary government authorizations, licenses and permits to operate and expand the Company’s facilities; regulatory or policy changes such as changes in applicable laws and regulations, including federal, state and provincial legalization, due to fluctuations in public opinion, industry perception of integrative mental health, including the use of psychedelic-assisted therapy, delays or inefficiencies or any other reason; any other factor or development likely to hamper the growth of the market; the Company’s limited operating and profitability track record; dependence on management; the Company’s need for additional financing and the effects of financial market conditions and other factors on the availability of capital; competition, including that of more established and better funded competitors; the impact of the Russia-Ukraine conflict on the global economy; the continued impact of the COVID-19 pandemic; and the need to build and maintain alliances and partnerships, including with research and development companies, customers and suppliers. These factors should be carefully considered, and readers are cautioned not to place undue reliance on forward-looking statements. Despite the Company’s efforts to identify the main risk factors that could cause actual measures, events or results to differ materially from those described in forward-looking statements, other risk factors may cause measures, events or developments to materially differ from those anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in forward-looking statements. The Company does not undertake to revise forward-looking statements, even if new information becomes available as a result of future events, new facts or any other reason, except as required by applicable laws.

Investor Disclosures

Technical420 LLC is not a FINRA member firm. Technical420 LLC is responsible for the preparation and distribution of research created in the United States. Technical420 LLC is located at 40 SW 13th St. Suite 1002, Miami, FL 33130.

Technical 420 LLC, and any of its directors, officers, employees, affiliates, or subsidiaries does not accept any form of compensation from companies in return for writing reports on them. Also Technical 420 LLC, and any of its directors, officers, employees, affiliates, or subsidiaries do not hold any stock positions in companies covered by Technical420LLC.

Share

Tags

Michael Berger is Managing Partner of StoneBridge Partners, LLC and Founder of Technical420.com. Prior to entering the cannabis industry, Michael was an Equity Research Analyst at Raymond James Financial covering the Energy Sector. Michael has been featured in publications such as The Street, Bloomberg, US Money News, and hosts various cannabis events across North America.

Top Stories