CANNAINVESTOR Magazine U.S. Publicly Traded Aug / Sept 2019 | Page 32

Aside from issues stemming from investors, the company seems to have struggled with finding a profitable business model, having pivoted from being a social media company to a dispensary finder, a blockchain company, a cannabis rewards company, and now to a cannabis logistics and supply chain company with the recently announced acquisition of COWA Science Corporation. COWA is a supply chain-oriented company that sells picks, shovels, soils, and the nutrients that cannabis growers need to successfully cultivate cannabis plants. COWA Science made $1.5 million in revenue last year. MassRoots hopes there will be synergies by combining COWA with their advertising and technology platforms. He hopes COWA will help them turn a profit and become their main focus.

MassRoots desperately needs that revenue.

The company has failed after multiple injections of capital to turn a profit.

MassRoots it seems has burned through multiple rounds of capital from the largest investors in the Cannabis industry including Arcview, Poseidon Assets Management and Dutchess Capital among them, some of the largest investing firms in the cannabis industry.

Poseidon has since divested from them. They declined to comment on their reasoning, calling such information regarding their relationship and investments into MassRoots “confidential for our LPs”.

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