Friday August 25, 2017 0 comments
DENVER -- MassRoots, Inc. (OTCQB: MSRT) announced the acquisition of CannaRegs, Inc., a leading technology platform that tracks changes in cannabis regulations and taxation at the municipal, state, and federal levels.
MassRoots, said it has entered into a definitive agreement to acquire CannaRegs in a stock deal valued at approximately $12 million.
Closing of the acquisition is subject to closing conditions as fully detailed in MassRoots' Current Report on Form 8-K filed with the U.S. Securities and Exchange Commission on August 23, 2017.
Founded by former Federal Reserve regulator Amanda Ostrowitz in 2014, MassRoots said CannaRegs will be critical in helping the California adult-use market stay compliant. As one of the premier technology companies in the cannabis industry, CannaRegs is recognized for leading the movement with majority female leadership at its helm.
"We hope that this acquisition will expand MassRoots' compliance offerings, consolidating the most important operations for cannabis businesses into one central platform," said Isaac Dietrich, MassRoots CEO.
"We expect with MassRoots' resources and relationships, we can grow the number of businesses utilizing CannaRegs and significantly increase MassRoots' contractually-obligated monthly recurring revenue."
MassRoots is a cannabis social network that allows users to research cannabis strains and product information, locate dispensaries and products, and read the latest in cannabis news.
The CannaRegs software-as-a-service (SaaS) enables dispensary owners, law firms, investors, consultants, and municipalities to track cannabis regulations, both implemented and proposed, in real-time, ensuring they stay compliant with state and local law.
The acquisition, when closed, is expected to cement MassRoots's consolidation of the business-to-business software market, along with recent acquisitions of Odava, a leading point-of-sale platform for cannabis-related business, and Whaxy, an online menu-management and consumer loyalty platform.
When completed, MassRoots said the CannaRegs acquisition will enable businesses to easily update their operational procedures and report to regulators through the MassRoots platform.
"The cannabis industry is increasingly becoming compliance-centric and even minor changes in municipal regulations can have a significant impact on day-to-day operations,” said Ostrowitz, CannaRegs CEO.
“CannaRegs has made it easy for businesses, regulators and attorneys to track regulatory changes in real-time, often for less than the cost of one billable hour.
"By becoming part of MassRoots' expanding portfolio of technology offerings, we will be able to realize strong synergies in the development and distribution of our platform. We look forward to aggressively growing our market share in California and other key markets."
In California alone, there are 539 local jurisdictions with different regulations, tax rates, and zoning laws related to the cannabis industry. With the upcoming adult-use market set to open in 2018, local jurisdictions are currently writing new regulations and cannabis entrepreneurs are doing their best to stay up-to-date.