MassRoots has been pushing the limits since their inception. The social media home for like-minded cannabis folks became a popular community for those in the cannabis world. That popularity is what prompted the site to try to follow in the footsteps of the likes of Facebook and take their company public. While they wrestle with NASDAQ and trying to raise capital, MassRoots has it’s eyes set on a new venture.
Per Business Insider
technology platform for cannabis consumers, is acquiring CannaRegs in a stock deal for $12 million, multiple sources told Business Insider on Wednesday.
The acquisition allows MassRoots to become a one-stop shop for cannabis businesses to connect with customers and ensure they’re in compliance with all state and federal regulations, Massroots CEO Isaac Dietrich told Business Insider in a phone call on Wednesday.
The acquisition is part of a larger push to consolidate Massroots’ business-to-business offerings. Massroots, founded in 2013, is a user-driven social media platform for marijuana consumers. The company is now seeking to expand its software services.
It “expands MassRoots’ compliance offerings, consolidating the most important operations for cannabis businesses into one central platform,” Dietrich said.
CannaRegs, started in 2014 by Amanda Ostrowitz, a former Federal Reserve regulator and licensed attorney, is a subscription-based service that provides businesses access to all local, state, and federal cannabis-regulations.
Dietrich notes that CannaRegs is cash-flow positive and debt-free, and it’s one of the few cannabis companies with majority-female leadership.
“The cannabis industry is increasingly becoming compliance-centric and even minor changes in municipal regulations can have a significant impact on day-to-day operations,” Ostrowitz said.
MassRoots also acquired Massroots also recently acquired Odava, a point-of-sale platform, and Whaxy, a consumer loyalty platform earlier this year.