Isaac Dietrich is back in as MassRoots CEO following his ouster in October by the Board of Directors.
What happened? On Oct. 16, board members voted to remove Dietrich and install then-Vice President Scott Kveton following MassRoots’ deal to acquire CannaRegs – a technology platform that tracks federal and municipal cannabis regulations. Kveton and other board members believed the $12 million price was too steep. CannaRegs President Amanda Ostrowitz voided the deal two days after it was announced the board had voted to remove Dietrich.
On Nov. 14, MassRoots filed a lawsuit against the founder, alleging that Dietrich had paid himself and others without authorization amounts totaling $250,000; and committed “serious misconduct,” including “illegal drug use at the workplace,” and sexual misconduct, according to a Cannabist report, citing the complaint.
All the while, Dietrich remained the company’s largest shareholder and had threatened to hold a shareholder proxy vote to reinstate him; instead, on Dec. 12, three board members, Ean Seeb, Vincent Keber, and Terence Fitch, resigned from the company’s board, and Kveton resigned as CEO and left the company the following day, according to a Thursday 8-K filing. As part of the separation agreement, the board members received an undisclosed stock-and-cash package while Kveton received a $45,000 severance package and his 1.5 million-plus stock shares were “accelerated and vest immediately upon his resignation.”
“My slate of directors was appointed, Scott Kveton resigned today, and I was reappointed CEO. So it achieved everything the proxy aimed to achieve, but it was done much more rapidly and at a much lower cost.” – Dietrich to MJBizDaily
Charles Blum, former president and CEO of QS Energy; Cecil Kyte, Rightscorp CEO; and Nathan Shelton, former director of QS Energy, were named to the MassRoots board. The lawsuit has been dropped.
Get daily cannabis business news updates. Subscribe
End