In terms of U.S. based legal marijuana related companies, it is our opinion that MassRoots Inc (OTCMKTS:MSRT) is one of the most solid. However, like many players in the space, 2017 has not been a good year for it, from an investment standpoint. The Trump Administration’s DOJ, led by outspoken marijuana detractor Jeff Sessions, cast a shadow over the American cannabis markets that hasn’t dissipated since. Sessions is a friend to Big Pharma, which stands to lose untold billions to pot, so it’s no surprise that he hasn’t been afraid to use false data and draconian reasoning to support his public attacks on cannabis.
Our long term stance is that marijuana is a medicine, and a far more effective one than many, if not most, of the offerings from the mainstream pharmaceutical industry. It’s also far less dangerous than legal alcohol, by a drastic margin. Couple those facts, with the fact that the marijuana industry generates billions of dollars in revenue per year, and we don’t think any amount of Federal government meddling can ultimately bring its forward momentum to a halt.
The current environment certainly hasn’t stopped MassRoots Inc (OTCMKTS:MSRT) from executing its aggressive growth strategy via acquisition, of which CannaRegs is one. The company announced today that CannaRegs has secured multiple government contracts in California.
CannaRegs, which provides users with access to all cannabis-related rules and regulations from municipal, county, state and federal sources, has addedSonoma County, Mendocino County, Yolo County and San Joaquin County to its subscriber base in the last 60 days. This brings CannaRegs up to a dozen government contracts that include the likes of Los Angeles County and the City of Sacramento.
“We are extremely pleased to announce these new contracts, which significantly expand our operations throughout the rapidly-emerging Californiamarketplace,” stated Mrs. Amanda Ostrowitz, Co-founder of CannaRegs. “These agreements allow us to enhance our market presence within California’s $5 billion legal cannabis industry and we expect to generate significant revenues as we execute on these contracts. Going forward, we expect to leverage these new government relationships and our best-in-class technology to capture additional market share and significantly increase revenues.”
In November 2016, California passed Proposition 64 allowing for the full legalization of marijuana. The implementation of this new law has brought with it significant regulatory issues. Oversight relating to water usage, licensing, background checks and safety and education training are just some of the rules in which retailers will need to familiarize themselves. (Source: PR Newswire)
The CannaRegs acquisition will come on the heels MSRT’s successful acquisitions of Odava, a point-of-sale and regulatory compliance platform in July 2017, and Whaxy, an on-line ordering and menu solution both for cannabis retailers in December 2016. Odava and Whaxy’s products are now collectively referred to as MassRoots Retail.
The moves represent what has been a steady bolstering to the MSRT portfolio of services it can provide to businesses in the legal marijuana industry: advertising to cannabis consumers, reporting to state regulatory systems, and streamlined management of their supply chain. The company believes that these acquisitions solidify MassRoots as one of the leading technology companies in the regulated cannabis business, which ArcView Market Research has projected to grow from $6 billion to as much as $22 billion over the next five years.
Stay locked to Street Register for updates, and we’ll deliver important developments on MSRT as they unfold. In the meantime, if you’ve yet to sign up for our 100% free newsletter, do so now! Just enter your active email address into the box below and submit!
Disclosure: No one at Street Register has been compensated in any way for the publishing of this article, nor do we hold any position in MSRT stock, short or long.