MassRoots, Inc., the ‘Facebook’ for cannabis consumers, is filing an offering to sell stock with hopes that the NASDAQ will approve it for a listing.
The social network was formed in April of 2013 as an online community for people that smoke pot. It now has 775,000 users and 380,000 followers on Instagram. While there are plenty of social networks like Facebook, Twitter TWTR -1.09% or Instagram, many people are not comfortable sharing their cannabis consumption in a place that family, friends and co-workers go to.
MassRoots went public last April on the OTCQB Marketplace under the symbol MSRT; it’s trading at $1.28, well off its all-time high of $7.01. As of March, there were 90 shareholders of record and roughly 47 million shares issued and outstanding.
MassRoots plans to use the proceeds of the offering for general working purposes, but also to repay bridge notes and develop new feature sets for the mobile applications. The company will also need the additional money in order to meet NASDAQ requirements, which they expect will cost the company $150,000 a year – should NASDAQ approve them. MassRoots has also made sure that its board of directors meets the NASDAQ requirements.
MassRoots has revenue of $213,963 for the year ending 2015, but logged a net loss of approximately $8 million.MassRoots had $386,316 in cash on hand as of the end of 2015. It only began selling advertising in August of 2015 and while advertising revenue can hard to predict, Facebook has shown that it can be a successful strategy if done right.