MassRoots completes $5M equity financing to scale
Friday October 21, 2016
DENVER -- MassRoots, Inc. (OTCQB: MSRT), one of the leading technology platforms for the cannabis industry, announced it completed a $5 million equity offering under its Registration Statement, declared effective by the Securities and Exchange Commission on Aug. 11.
There will be no further sales in this offering, the company said.
MassRoots' founder and largest shareholder, Isaac Dietrich, led the round with participation from former MyPoints.com CEO Steve Markowitz, Aphria, The Delavaco Group, and several family offices.
"Management believes that 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.
“Going forward, MassRoots will remain focused on introducing new monetization channels within our mobile applications while exploring strategic partnerships to expand our platform's capabilities."
The equity offering has given MassRoots its largest cash on hand in its corporate history as it continues to grow its user base. During the ongoing 2016 election cycle, 9 states with more than 30 percent of the U.S. population will be voting on regulating the sale of cannabis for medicinal or recreational use.
The company said it anticipates that the passage of any combination of these initiatives has the potential to significantly accelerate MassRoots' 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 $988 million in 2015 compared to $351 million in 2014 — growing 184 percent year-over-year. America's 2015 marijuana sales were higher than those of Dasani, Oreos and Girl Scout cookies.