MassRoots, the “Facebook” of cannabis, has submitted an application to the U.S. Securities and Exchange Commission on Monday, hoping to earn approval to list on the NASDAQ exchange.
Founded in 2013, the social networking company boasts 775,000 users along with 380,000 followers on Instagram. The mobile app connects cannabis consumers with cannabis businesses and acts as a resource for keeping up with legalization news, sharing experiences, trends, and reviews. The Denver-based social network doesn’t directly deal with marijuana–their NASDAQ application acknowledges that marijuana is still a schedule I drug and as such is illegal under federal law. However, MassRoots’ application could be turned down just because the company works with cannabis businesses for advertising, much like their denial from the finalists panel for best app at TechCrunch last year.
MassRoots had revenue of $213,963 for the year ending 2015, a net loss of approximately $8 million and about $386,316 in cash on hand. It began selling advertising in August of 2015.
MassRoots went public last April on the OTCQB Marketplace under the symbol MSRT. It’s trading at $1.28. It reached an all-time high of $7.01.
MassRoots plans to use the proceeds of the offering to repay bridge notes, develop new features for the company’s mobile app and meet certain Nasdaq expenses (roughly $150,000 a year).
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