NEW YORK, NY / ACCESSWIRE / March 30, 2017 / SeeThruEquity, the leading independent equity research firm focused on smallcap and microcap public companies, today announced it has issued an update on MassRoots, Inc. (MSRT).
The report is available here: MSRT Update Note.
Based in Denver, Colorado, MassRoots (OTCQB: MSRT, "MassRoots") operates a technology platform for the legal cannabis community, including businesses, consumers, and activists, with a goal of becoming a leading destination for quality consumer information on the increasingly diverse and varied number of legal cannabis products, dispensaries, and legalization updates. The company's fast-growing technology platform is available via the internet and its consumer-facing mobile app. Indeed, MassRoots has leveraged community-generated content and industry affiliations including ArcView Group and the National Cannabis Industry Association to accumulate more than 1,000,000 users and emerge as one of the fastest growing technology platforms in the cannabis industry.
Highlights from the note include:
Massroots Continues to Grow User Base, Surpasses 1mn Users
We were pleased to see MassRoots announce that the company had surpassed 1mn registered users on its platform. The announcement shows that MSRT is achieving scale and becoming a measurable part of the estimated 10mn regular cannabis consumers who reside within a state with medical or recreational cannabis law. MSRT CEO, Isaac Dietrich, is targeting a market penetration of 25%-35% of cannabis consumers in regulated cannabis markets.
New Website, App Approved by Google Play
MassRoots had planned several technical initiatives ahead of April 20, 2017, and appears to have completed them ahead of schedule. The company's mobile app was approved on Google Play, one of the most popular mobile platforms. Perhaps more importantly, MassRoots announced that it had enhanced its web site with new features and functionality. The improvements allow for users to rate products and strains based on their "effectiveness for treating ailments such as back pain of epilepsy." Additionally, the site presents this information in a user-friendly format, allowing consumers to make informed purchasing decisions at their local dispensary, and has improved search optimization and geo-targeted inventory for advertisers.
MSRT Benefits from Warrant Financing, Closes on Whaxy
MassRoots also continues to take strategic actions to improve its balance sheet and improve its platform. Following its raise of $5.5mn in 4Q16, the company announced that it had raised $2.9mn through warrant exercises ($0.90 conversion price), and also retired all $1.5mn of its convertible debt outstanding. Additionally, in late January the company closed on its previously announced acquisition of Whaxy, an online order-ahead and menu management platform, which has processed over 40,000 transactions and $5mn in volume since its founding in May 2016. The move has clear synergies with MassRoots' offerings including its dispensary finder application, and we are eager to receive an update from the company on its performance and the outlook for 2017. Upon the closing, MSRT issued 2.9mn shares and $100,000 in cash to Whaxy for consideration.
Price Target of $2.40 for MSRT
Our price target is $2.40 for MassRoots. MassRoots appears to be tracking in line with our initial view and is seeking to capitalize on the strong growth trends in the cannabis industry. There are several key events on the horizon for the company as it seeks to become profitable in 2017 and is targeting robust growth over the next two years as seeks to generate comparable monetization to Weedmaps and Leafly. We plan to review our target and estimates upon the release of 1Q17 results and guidance.
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About MassRoots, Inc.
MassRoots Inc. (MSRT) is one of the largest and most active technology platforms for cannabis consumers, businesses, and activists with over 900,000 registered users. It is proud to be affiliated with the leading organizations in the cannabis industry, including the ArcView Group and National Cannabis Industry Association. MassRoots has been covered by Fox Business, CNBC, Fortune, Denver Post, and The Financial Times (www.MassRoots.com).
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