After burning through nearly $20 million, MassRoots (MSRT) has managed to raise another $4.75 million according to CEO Isaac Dietrich in a conference call held on Thursday for investors. and fully repay capital debt. Dietrich also said that he hopes to get the company to become cash flow positive this year. “We have a significant runway,” said Dietrich.
On the call, Dietrich added that the company has reduced its employee count to five and its burn rate to $200,000 a month. The company has moved its offices to a WeWork space after it was reported that it had been evicted from its Denver offices.
Dietrich did address the 800-pound gorilla in the room and discussed his ouster and the change in board members. He noted the new board is supportive of the move to blockchain technology.
Mostly he discussed the blockchain technology that MassRoots is now focused on. He wants to use this technology for seed-to-sale processing and identity management The company hopes to introduce a business portal blockchain product in the few weeks that will track analytics. The company has not announced plans for a cryptocurrency.
MassRoots currently has several hundred dispensaries that pay a couple hundred of dollars a month for services. He hopes to grow that to $500. The goal is to increase dispensaries to 1,000. He noted that he has a large market share of cannabis consumers on the internet through the social media site and has strong SEO traffic.
CannaRegs is the main focus for the California market. Dietrich said MassRoots has invested $300,000 in the company and that it has been the best investment. He said they have a strong relationship with the team. “We’re excited to continue to see their growth,” he said. Dietrich also noted that the company is an investor in High Times and that he is excited to continue to work with them.
MassRoots is exploring the possibility of a Canadian stock offering. Dietrich said that Aphria (APHQF) had invested in MassRoots over the past 18 months. He said the company was interested in learning how consumers were reacting to products and adding MassRoots clients to its patient database.