Denver-primarily based cannabis technologies organization MassRoots’ site has been offline for a quantity of days, raising fresh inquiries about the monetary well being of a organization that has been in turmoil considering that at least 2017.
Isaac Dietrich, the company’s founder and chief executive officer, maintained in an e-mail to Marijuana Company Day-to-day that the cannabis social networking pioneer is nevertheless in operation, in spite of some reports to the contrary.
“Our site will be back on the net shortly,” Dietrich wrote. “We lately encountered server challenges that are in the approach of getting resolved.”
MassRoots, founded in 2013, has burned by means of millions of dollars though attempting to figure out a way to turn into lucrative.
The technologies app enables customers to price cannabis merchandise and strains. The notion is that corporations can use that facts to strategically promote to customers primarily based on their preferences.
But the company’s monetary circumstance has looked dire for some time.
MassRoots is late in filing its third-quarter report to the U.S. Securities and Exchange Commission.
Having said that, 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 by no means has been an situation, and MassRoots has raised a lot more than $750,000 considering that July, mostly from 3 institutional investors.
“We’re laser-focused on acquiring MassRoots to a point exactly where it is creating optimistic money flows from operations,” he noted.
John Fife, founder of a Chicago-primarily based investment banking firm that supplied financing to MassRoots, mentioned this week he believes the organization is nevertheless in operation but acknowledged: “I do not genuinely know.”
Fife said 1 of his investment firms 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.
Having said that, MassRoots’ stock is practically worthless.
Shares of MassRoots (OTC: MSRT) have been trading at about a third of a cent on Wednesday, according to the OTC site.
Meanwhile, Dietrich waxed optimistic about the company’s future in spite of the truth MassRoots’ site has gone dark.
He noted that the organization has invested in the improvement of a new cannabis rewards plan 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]