MassRoots closes $3.2M equity financing to date, receives $1.1M in proceeds
Monday October 10, 2016
DENVER -- MassRoots, Inc. (OTCQB:MSRT), one of the leading technology platforms for the cannabis industry, announced it has closed on $3.2 million in equity financing to date under its Registered Offering, declared effective on Aug. 11, 2016.
On Oct. 7, the company said it received $1.1 million in proceeds, mostly from new investors, as well as commitments for additional funds under the terms of the offering.
MassRoots' founder and largest shareholder, Isaac Dietrich, led the round with participation from former MyPoints.com CEO Steve Markowitz and several family offices.
"We believe these funds are sufficient for the company to reach cash-flow positive and to scale our commercialization efforts to a much wider audience," said Dietrich.
"We are confident that the current political climate coupled with increasing demand in regulated cannabis markets presents a tremendous growth opportunity for MassRoots.
“We're focused on introducing new monetization channels within our mobile applications while exploring strategic partnerships to expand our platform's capabilities."
MassRoots said the equity offering has brought the company to a solid cash position as it continues to grow its user base. During the 2016 election cycle, 9 states with over 30 percent of the U.S. population will vote on regulating the sale of cannabis for medicinal or recreational use.
MassRoots said it expects the passage of any combination of these initiatives has the potential to significantly accelerate its user and revenue growth.
The regulated cannabis market in the United States is projected to reach more than $7 billion this year, according to a report by New Frontier and ArcView Market Research.
That represents 26 percent growth over the previous year, driven largely by adult recreational sales of marijuana, researchers found.
Regulated adult recreational marijuana sales topped $998 million in 2015 compared to $351 million in 2014 — growing 184 percent year-over-year.
MassRoots continues to sell its common stock and warrants pursuant to the Registered Offering. For more information on the offering, refer to MassRoots' prospectus, dated Aug. 11, 2016, filed with the U.S. Securities and Exchange Commission.
MassRoots is one of the largest and most active technology platforms for cannabis consumers, businesses and activists with over 900,000 registered users.