This morning, MassRoots Inc. (OTC:MSRT)released their July investor deck along with a letter from the company's CEO, Issac Dietrich and we think it’s worth a look. Scroll through the slides above to see what's going on at MassRoots. Read below to see some highlights from his letter to shareholders.
Highlights From Issac Dietrich's Shareholder's Letter
Last week, MassRoots entered into an merger agreement with Odava, Inc., a leading compliance and point-of-sale system for cannabis-related businesses. The successful completion of this merger will enable MassRoots to expand their offerings to dispensaries and other canna-businesses.
Through a partnership with Franwell, Inc. (developer of the METRC system, a seed-to-sale tracking software that is currently used in Oregon, Alaska and Colorado and that will soon be used in both Washington and California) the Odava system enables direct reporting to state regulators.
Upon the completion of the deal, MassRoots will be working to integrate the Odava system with the MassRoots community network. This will enable consumers to view real-time pricing and inventory data, product reviews, discounts and more.
Mr. Dietrich went on to discuss the company's strategic direction:
"Four years ago, I invested my life savings to start MassRoots and since then, purchased stock on two occasions at $0.50 per share, to take advantage of three core opportunities in the cannabis marketplace:
Patients and consumers need an app to find the best products and, as state and App Store regulations permit, order cannabis directly from their smart phones;
Cannabis-related businesses are in need of result-driven advertising and customer loyalty systems to boost sales. An online community of over a million of the world's most passionate cannabis consumers is their target audience; and
Dispensaries need reliable software to streamline their operations and manage their compliance reporting to state regulators in an efficient manner.
We believe MassRoots is uniquely positioned to solve these problems. First, we estimate our market-share of cannabis consumers on our mobile applications is among the top three in the country and the MassRoots brand is one of the most recognized in the industry. Second, we have a top-tier engineering team, made up of some of the world's top technologists that enables us to build better products and move faster than anyone else in the space. Third, MassRoots has one of the largest data sets in the cannabis space, giving us knowledge on the sector very few people have – and giving us the necessary insight to build products that drive immediate value for dispensaries. Lastly, with over 25,000 shareholders, $17 million raised to date through equity financings and warrant exercises, and no long-term debt on our balance sheet, we believe we have access to the capital necessary to rapidly grow our platform."
He then went on to tackle some of the company's 'lessons learned' and plans going forward:
MassRoots has significantly reduced their advertising budget and marketing staff and has refocused their marketing activities on dispensaries and their customers (something that fits well in regards to the Odava acquisition). The company expects their brand growth going forward to be driven by customer loyalty programs set up through dispensaries.
The company is also in the process of hiring a new, more experienced Chief Operating Officer and has chosen not to renew a contract with a software development team.
These changes are expected to help the company reduce expenses by more than $1.5 million/year.
Going forward, MassRoots will be focusing on expanding the number of dispensaries using their platform and the amount of monthly reoccurring revenue that each dispensary brings in. The company will be updating investors on these metrics often and management will be using them to adjust strategy as needed.
In midday trading Monday, shares of MassRoots are roughly flat on lighter than average trading volume. Year-to-date, shares of MassRoots are down nearly 50%.
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