MassRoots, Inc. (“MassRoots” or the “Company”) (OTC:MSRT), a media company focused on the regulated cannabis industry, is pleased to release an updated Shareholder Update Deck along with the following letter from the Company’s Chairman and Chief Executive Officer, Isaac Dietrich.
Fellow MassRoots Shareholders,
I’m pleased to report that over the past few months, we have implemented a remote-operations plan that significantly reduces our monthly expenses, renegotiated contracts with our service providers, and adopted a plan that, we believe, could result in MassRoots generating positive cash-flows from operations in the coming months.
The central component of this plan is monetizing MassRoots’ existing media assets: one of the most trafficked cannabis-related websites – MassRoots.com – which receives hundreds of thousands of unique visitors a month, social media accounts that rank among the most widely-followed in the industry, and an email newsletter with more than 920,000 opt-in subscribers. We believe that by monetizing these assets through display advertising, product placement, and daily deals, MassRoots could generate significant monthly revenues.
While our long-term goal remains building the leading technology platform for the cannabis industry, we believe it will likely take significant capital to do so. Therefore, we believe it’s in the best interests of our shareholders to focus on monetizing our existing online and social media platforms over the coming months with the goal of generating positive cash-flows from operations.
The adoption of MassRoots’ revenue-focused corporate strategy is occurring while, we believe, the regulated cannabis industry could be on the verge of federal acceptance.
During the week of September 21, 2020, the House of Representatives is scheduled to vote on the Marijuana Opportunity Reinvestment and Expungement Act (“MORE Act”), which, if passed, would legalize cannabis at the federal level. In May 2020, the House of Representatives passed the Secure and Fair Enforcement Banking Act (“SAFE Banking Act”) as part of their Coronavirus Stimulus Package, in addition to passing it as a stand-alone bill.
We believe the passage of one or both of these pieces of legislation would eliminate some of the industry’s strongest headwinds and could:
- Lead to national, well-capitalized banks accepting and making traditional loans to cannabis companies;
- Enable dispensaries and ancillary brands to accept credit cards as a form of payment;
- Permit cannabis companies with U.S. operations to list on national exchanges; and
- Improve the perception of the cannabis industry amongst investors in a meaningful way.
If one or both of these pieces of legislations become law, we believe there will likely be an influx of capital into the industry which, in turn, could lead to cannabis companies substantially increasing their spending on advertising.
We believe MassRoots is well-positioned to benefit from these pieces of legislation. In addition to closing $700,000 in bridge financing thus far in 2020 while significantly reducing our operating expenses, we have adopted a plan as detailed above that, we believe, could cause MassRoots to generate positive cash-flows from operations in the coming months.
If these plans are successful, we believe MassRoots could become one of the greatest comeback stories in the cannabis industry and we are focused on making it happen for the benefit of all our shareholders.
Chairman of the Board of Directors
MassRoots, Inc. (OTC Pink: MSRT) is a leading media company focused on the regulated cannabis industry, with a significant following and traffic across its online and social media platforms. MassRoots has been covered by CNBC, CNN, Financial Times, Wall Street Journal, New York Times, Reuters, Associated Press, and Forbes. For more information on MassRoots, please visit MassRoots.com.
This press release contains certain forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are identified by the use of the words “could,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “may,” “continue,” “predict,” “potential,” “project” and similar expressions that are intended to identify forward-looking statements. All forward-looking statements speak only as of the date of this press release. You should not place undue reliance on these forward-looking statements. Although we believe that our plans, objectives, expectations and intentions reflected in or suggested by the forward-looking statements are reasonable, we can give no assurance that these plans, objectives, expectations or intentions will be achieved. Forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause actual results to differ materially from historical experience and present expectations or projections. Actual results to differ materially from those in the forward-looking statements and the trading price for our common stock may fluctuate significantly. Forward-looking statements also are affected by the risk factors described in our filings with the U.S. Securities and Exchange Commission. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.