This Cannabis Social Network Is Planning for an IPO Again
MassRoots, a social network for cannabis users, has filed plans for a second time to launch an initial public offering on the Nasdaq in a bid to become the first in the space to go public.
The cannabis startup, which currently trades in over-the-counter markets, is aiming to list shares on the Nasdaq Capital Market under the symbol MSRT. MassRoots is a network that connects cannabis users to share their experiences, follow their favorite dispensaries, and stay informed about legalization updates. It has a community of about 775,000 users.
If the IPO were to successfully launch, MassRoots says it would use proceeds to accelerate user growth, develop new features for the company’s mobile app, expand the services of the company’s business, and use funds for working capital.
Interestingly, it isn’t the first time MassRoots has aimed to go public to become one of the first public companies with ties to the cannabis community. (So far, only biotech stocks in the space have launched an IPO). MassRoots filed with the Nasdaq last summer to go public, but that effort wasn’t successful as it didn’t have a bank underwriter. As Fortune has reported, banks have been leery about their involvement with the marijuana industry.
But this time, MassRoots has banking support. The IPO is being underwritten by New York-based investment banking firm Chardan Capital Markets.
The latest filing with the Securities and Exchange Commission also revealed some new financial details for MassRoots. The firm reported $213,963 in revenue for 2015 on a net loss of $8.5 million, compared to the prior year’s $9,030 in revenue on a net loss of $2.4 million.