In 2013, MassRoots was formed as a technology platform for the medical cannabis community and the app now has over a million cannabis consumers.
The last year has been a ride for shareholders and we are favorable on the recent moves by the company. MassRoots recently pivoted its business model and the technology platform is focused on connecting dispensary operators, cultivators, consumers, and regulatory agencies in a closed-loop environment focused on compliance.
MassRoots’ point-of-sale software allows dispensary operators to record sales, track inventory, and submit this data to state regulatory agencies on a daily basis.
An Improved Balance Sheet
After concerns were raised regarding MassRoots’ financial strength, the company took steps to strengthen its balance sheet to capitalize on new opportunities.  Since July, the cannabis technology firm has raised over $2 million.
Last week, MassRoots raised approximately $1 million after it entered into a securities purchase agreement to sell convertible notes and warrants to purchase shares of common stock. This comes after MassRoots received $1,217,000 in aggregate gross proceeds after it sold 2,434,000 shares of common stock and warrants to purchase up to 2,434,000 shares of common stock.
While concerns have been raised regarding the price of these financings, MassRoots will use the proceeds to support its recent acquisition and capitalize on the California cannabis market.
Pivots its Focus After the Odava Acquisition
MassRoots has refined its focus and its strategy for generating revenue.
At the outset, the company had previously focused primarily on user growth. It’s emphasis is now, it is focused on increasing the number of dispensaries using its platform. This change comes after MassRoots completed a merger with Odava in July.
The Odava Retail Platform is available to dispensary operators in Oregon as a paid software-as-a-service platform to manage their point-of-sale, compliance and loyalty program operations. The software streamlines dispensary operations and work flows, while enabling seamless interaction with their customers through the MassRoots App.
A Transition to Watch
We are favorable on this transition and believe that the company can benefit by generating a larger amount of revenue from its average client.
credit:420intel.com
