MassRoots Inc (OTCMKTS:MSRT)
MassRoots Inc (OTCMKTS:MSRT) stock is up over 10% in mid-morning trading on heavy volume. The stock’s move comes on the heels of the company announcement of a $12 million acquisition for Cannaregs, Inc. – a technology platform that monitors and alerts users to regulatory and legislative changes regarding the legal cannabis industry. The announcement lifted MSRT stock above its flirtation with its 52-week low of $0.38 and was trading around $0.47 at 11AM EST.
Amanda Ostrowitz founded Cannaregs, Inc. in 2014. The privately held company is cash-flow positive and debt-free with more than $450,000 in annually recurring, contractually-obligated revenue. The service is seen by many in the legal cannabis industry as a “must have” to minimize their businesses regulatory risk. To demonstrate the potential regulatory complexity all one has to do is look at California which has 539 local jurisdictions with different regulations, tax rates, and zoning laws related to the legal cannabis industry.
MassRoots is a social media platform used by recreational consumers of cannabis. Users access the platform through an App and share experiences and ratings of different strains, and forms, of cannabis and cannabis oriented products such as food items or sleep aids. The site was lucky enough to experience viral growth among its APP users. MassRoots popularity even took on tech giant Apple. In late 2014, Apple’s App store was declining to continue to offer the free MassRoots App and went so far as to publish a rule that all cannabis social networks were banned from their App platform. What followed may have made history. An email campaign was started by MassRoots’ users and fans. A letter was authored and signed by dozens of business leaders in the cannabis industry. In less than 60 days, Apple reversed their policy and allowed the MassRoots App into their online store.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.