Denver-primarily based cannabis technologies organization MassRoots’ web page has been offline for a quantity of days, raising fresh queries about the economic well being of a organization that has been in turmoil given that at least 2017.
Isaac Dietrich, the company’s founder and chief executive officer, maintained in an e mail to Marijuana Small business Everyday that the cannabis social networking pioneer is nonetheless in operation, in spite of some reports to the contrary.
“Our web page will be back on-line shortly,” Dietrich wrote. “We lately encountered server concerns that are in the course of action of becoming resolved.”
MassRoots, founded in 2013, has burned via millions of dollars even though attempting to figure out a way to come to be lucrative.
The technologies app enables customers to price cannabis goods and strains. The notion is that firms can use that information and facts to strategically promote to customers primarily based on their preferences.
But the company’s economic circumstance has looked dire for some time.
MassRoots is late in filing its third-quarter report to the U.S. Securities and Exchange Commission.
Nonetheless, the company’s second-quarter report ended June 30 showed revenues of just $18,366 and operating costs of $793,004, resulting in a net loss of $774,638.
MassRoots ended the quarter with only $1,650 of money on hand.
Regulatory filings also show that 3 board members resigned in July.
Dietrich wrote in his e mail that raising capital under no circumstances has been an situation, and MassRoots has raised extra than $750,000 given that July, primarily from 3 institutional investors.
“We’re laser-focused on acquiring MassRoots to a point exactly where it is creating good money flows from operations,” he noted.
John Fife, founder of a Chicago-primarily based investment banking firm that supplied financing to MassRoots, stated this week he believes the organization is nonetheless in operation but acknowledged: “I do not genuinely know.”
Fife said 1 of his investment providers supplied about $two million in financing to MassRoots.
A June regulatory filing indicated that Fife’s Iliad Management had converted a bulk of its promissory notes to 18.eight million shares of MassRoots.
Nonetheless, MassRoots’ stock is practically worthless.
Shares of MassRoots (OTC: MSRT) had been trading at about a third of a cent on Wednesday, according to the OTC web page.
Meanwhile, Dietrich waxed optimistic about the company’s future in spite of the reality MassRoots’ web page has gone dark.
He noted that the organization has invested in the improvement of a new cannabis rewards system that will be released later this month, and “we anticipate it to be a defining occasion for MassRoots’ neighborhood and shareholders.”
Jeff Smith can be reached at [email protected]