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Before recreational marijuana became legal in Colorado on January 1, 2014, there were less than 50 publicly traded cannabis companies; today there are over 350. Most of these companies trade on the over-the-counter (OTC) exchange which is comprised of startups, defunct public shell companies, scams, and a select number of good companies. One of the top companies on the OTC exchange is MassRoots, Inc. (MSRT) which is considered to be the “Facebook of the marijuana industry.”
This morning, MSRT released a 2015 Review and a 2016 Outlook. The letter came from CEO Isaac Dietrich who recapped the milestones accomplished last year and outlined key objectives for the next twelve months.
Number of Users and Revenue Continues to Grow
At the start of 2015, MSRT had over 200,000 users and its app was on the list of App Store’s banned applications. After thousands of users and cannabis industry executives complained to Apple Inc. (AAPL), MSRT’s application returned to the App Store in mid-February. As of early December 2015, MassRoots had grown its user base to 675,000 users, representing more than 200% growth. CEO Dietrich expects MSRT’s user base to continue to grow in 2016 due to improved functionality and a growing brand name.
In mid-August, MassRoots started generating revenue through advertising and had $60,000 in revenue by September 30th. Since then, MSRT has been increasing revenue by approximately 20% on a month-over-month basis. The company’s burn rate also has decreased on a monthly basis. This is a trend that we expect to continue throughout 2016 and beyond.
Executing on Initiatives Focused on Increasing the number of Users
After MassRoots’ user base broke through 450,000 users, activity on their application became overwhelming and this began to negatively impact user experience. In mid-September 2015, MSRT began migrating its infrastructure to Amazon Web Services. They expect to complete this process in January 2016 and this will significantly improve load times and user experience.
In late November, MassRoots released its new web interface which will open public content on MSRT’s network to search engines such as Google (GOOGL) for the first time. In a short period of time, some of MSRT’s blogs became one of the top results on Google for several cannabis-related searches. Once the company’s network is fully indexed on Google, MSRT will see search engine traffic increase significantly on a monthly basis.
Hiring New Talent and Improving its Service
During 2015, MSRT recruited a talented in-house development team and now has 9 full time programmers at its corporate headquarters in downtown Denver. Dietrich believes that the quality of MSRT’s development team will play a huge role in the new features and improved systems introduced in 2016.
During the first quarter of 2016, MSRT plans to release localized advertising features. This will allow dispensaries to target ads toward users that are within a specific distance. During the second quarter of 2016, MSRT plans to release personalized advertising features which will let businesses target users based on previous posts. These new features will improve the service offered by MSRT and should expand the number of businesses utilizing its advertising solutions.
MSRT plans to introduce new features and improvements on its web platform every two weeks. The company’s web interface presents an opportunity for MassRoots to start breaking into older age groups and expand well beyond the “stoner” demographic.
Top 10 Semi-Finalist at the Extreme Tech Challenge
In September 2015, MassRoots was one of 1,000 companies to apply for the Extreme Tech Challenge, a competition aimed at identifying companies that have the potential to break into the mainstream. In late November and after several rounds of interviews, MSRT was named a Top 10 semi-finalist.
On January 8, 2016, MSRT will be presenting to a panel of judges, media outlets and technology enthusiasts at the Consumer Electronics Show (CES). If MSRT is selected as one of the top 3 finalists, they will be invited to pitch to Sir Richard Branson on Necker Island in early February 2016. The fact that MSRT has made it this far is impressive. Even if they are not selected as a finalist, the exposure will significantly benefit the company.
Expects to Commence Trading on the Nasdaq During 2016
In late August 2015, MassRoots submitted an application to uplist to the Nasdaq Capital Markets with the goal of becoming one of the first cannabis technology companies listed on a national exchange. MSRT currently meets many of the key criteria for the Nasdaq, including the corporate governance requirements (this was met when former Coca-Cola executive Terence Fitch joined MSRT’s Board of Directors in December 2015). MassRoots expects to uplist to the Nasdaq in 2016.
Outlook
During 2016, at least 8 states are expected to have some form of cannabis legalization on the ballot including California, Arizona, Massachusetts, Nevada, Florida, Ohio, Maine, and Michigan. These states comprise close to 40% of the United States population and this would significantly increase MSRT’s total addressable market (TAM)
With marijuana legalization continuing to open new markets and MSRT steadily improving its services through new features and new developers, we expect to see shares move higher. The company will generate a lot of investor awareness as it participates in CES and recognition there would serve a major catalyst to shares. MSRT has fallen more than 50% during the last three months and shares are trading near oversold territory. We continue to see long term value in shares of MSRT and recommend that investors keep the company on their radar screen.
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.
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