MassRoots to Raise up to $5mm


MassRoots (OTC: MSRT), the cannabis technology company with a registered user base of over 900K, filed an amended S-1 yesterday pointing to an imminent stock offering. The company, upon the registration going effective, is seeking to sell up to 10mm units at $0.50 per unit. Each unit will include a common share and a warrant, which we understand to have an exercise price of $0.90 per share, below the $1.10 implied by the filing. If the company is successful in selling all of the shares it intends to offer, it will raise $5mm.

MassRoots has 49.3mm shares outstanding as well as 12.3mm shares that could be issued upon the exercise of warrants or convertible debentures ($0.51 weighted average exercise price) and 5.7mm shares  that could be issued upon the exercise of employee stock options ($0.63 weighted average exercise price).

The funds raised will be used for general corporate purposes, working capital and business development as well as the primary purpose, which is to pay $1.917mm to retire a bridge note.  The March 2016 Note Offering of $1.515mm is due in September. The company last sold equity in November, raising over $1mm selling shares (with warrants) at $1.25.

MassRoots shares are trading at $0.68, down 38% YTD:

msrt price 080916

Breaking News by Alan Brochstein, CFA
Alan Brochstein, CFA
Based in Houston, Alan leverages his experience as founder of online community 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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