MassRoots Confirms CEO Change and Will Pay Dietrich $31,666.64 in Severance

Confirming reports of the ouster of founder Isaac Dietrich as CEO, MassRoots (OTC: MSRT) issued an 8-K filing this morning. The company confirmed that Scott Kveton, who was serving as Vice President previously after joining when MassRoots acquired Odava, a firm he co-founded in Oregon, has been named CEO.

On Tuesday, Dietrich and MassRoots entered into a Separation Agreement that calls for Dietrich to be paid four months of salary at $7,916.66 per month and to receive four months of paid premiums for health insurance. He is also required to repay the company up to $25,000 in expenses should the company find that they shouldn’t have been submitted.

Dietrich’s agreement requires him for a period of three years to “standstill”. Specifically, he is not permitted to acquire assets of the company or even buy more shares, and he is prohibited from taking any actions to influence management of the company.

Following reports of the change in management on Monday afternoon, MassRoots stock plunged to an all-time low of $0.23 before closing at $0.29:

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Exclusive article by Alan Brochstein, CFA
Alan Brochstein, CFA
Based in Houston, Alan leverages his experience as founder of online communities 420 Investor, the first and still largest due diligence platform focused on the publicly-traded stocks in the cannabis industry. With his extensive network in the cannabis community, Alan continues to find new ways to connect the industry and facilitate its sustainable growth. At New Cannabis Ventures, he is responsible for content development and strategic alliances. Before shifting his focus to the cannabis industry in early 2013, Alan, who began his career on Wall Street in 1986, worked as an independent research analyst following over two decades in research and portfolio management. A prolific writer, with over 650 articles published since 2007 at Seeking Alpha, where he has 70,000 followers, Alan is a frequent speaker at industry conferences and a frequent source to the media, including the NY Times, the Wall Street Journal, Fox Business, and Bloomberg TV. Contact Alan: Twitter | Facebook | LinkedIn | Email

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