Cannabis-themed social networking platform MassRoots officially settled its debt of nearly $1 million last week, according to the Cannabist, after having defaulted last month on $966,000 worth of promissory notes to its creditors.
In its effort to settle the debt, the cannabis tech company reduced its workforce by more than 40 percent, terminated relationships with several vendors, and — according to documents filed last Friday with the U.S. Securities and Exchange Commission — dramatically reduced the annual salaries of its chief executive officer, chief operating officer, and chief technology officer.
In a press release issued this morning, MassRoots officials announced the company had closed $3.2 million in equity financing under its Registered Offering, originally declared effective on August 11, 2016. The company received $1.1 million in proceeds on Friday, October 7.
“We are confident that the current political climate coupled with increasing demand in regulated cannabis markets presents a tremendous growth opportunity for MassRoots,” MassRoots CEO Isaac Dietrich said in this morning’s press release. “We’re focused on introducing new monetization channels within our mobile applications while exploring strategic partnerships to expand our platform’s capabilities.”
There will be nine states voting on marijuana legalization measures this November. “MassRoots expects that the passage of any combination of these initiatives has the potential to significantly accelerate its user and revenue growth,” company officials disclosed in the release.