The Cannabis Business Social Network

Constables and cannabis business social network do not generally go well together. Except, perhaps, when it comes to the American stock market policeman (SEC) and a social network for marijuana users. No, you do not hallucinate, MassRoots submitted this Monday, its application for an IPO.

This start-up, created in 2013 in Denver, Colorado, was quickly renamed “the Facebook of cannabis”. Its entry on Wall Street would be a first for a group concentrating the two faces of marijuana, namely therapeutic use and recreational use.

Raise $ 6.5 million

MassRoots’ objective is to raise $ 6.5 million in order to repay debts, but also to develop by creating new features for its mobile application. The social network has already collected 775,000 users and claims, 380,000 subscribers, on its Instagram account.

Facebook’s little brother, who wants to grow up, presents himself as a technology company that does not “touch the plant”, does not produce it and does not distribute it. It simply offers future subscribers to create their page for free. “Our users use MassRoots to share their experiences on cannabis, follow their favourite distributors and stay informed about the legalization process,” explains the group.

$ 10.2 billion in cannabis sales in 2018

Thus, the social network which sees itself more as a technician of cannabis than as a producer wishes to be listed on the specialized platform Nasdaq, under the symbol “MSRT”. Nasdaq still needs to give its authorization. Potential market development could help. In fact, in his application, Massroots estimates that sales of cannabis, authorized under certain conditions in certain American states, could drop from $ 1.43 billion in 2013 to $ 10.2 billion in 2018.

“We believe that by developing a centralized community of cannabis users, we are creating a valuable marketing channel for cannabis and its related products,” said MassRoots in its application. However, the start-up faces a considerable risk: cannabis is still illegal in the United States under federal laws. However, MassRoots is already present in 23 American states, including that of the capital, Washington DC, where the use of THC is authorized for medical use.

A net loss of $ 8.5 million

Pending the response from the stock market policeman and Nasdaq, the start-up is already listed on an alternative platform called OTCQB. Its title hit a record $ 7.01 but has since declined to $ 1.28. MassRoots’ revenues increased from $ 9,030 in 2014 to $ 213,936 in 2015. The net loss, however, quadrupled from $ 2.4 million to 8.5 million. The group has generated its income from advertising on the platform since August 2015. The site can, from the hashtags of its users, determine consumption habits (type of cannabis business social network, places or times). The kind of data that investors love.

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