MassRoots, Inc., a Denver, Colorado based social media network centered around cannabis recently acquired DDDigital Inc., which does business as Whaxy, for $100,000 cash and 2.9 million shares in the integrated company. Scale Finance Partner, Gerhard Renner, advised the company on this strategic transaction throughout the process.
MassRoots is one of the largest technology platforms for the regulated cannabis industry. The Company’s mobile apps enable consumers to make educated cannabis purchasing decisions through community-driven reviews. Publicly-traded MassRoots is proud to be affiliated with the leading businesses and organizations in the cannabis industry, including the ArcView Group and National Cannabis Industry Association.
Whaxy, also based in Denver, Colorado launched in May 2016 and provides an online ordering platform and inventory management for marijuana dispensaries. The company is growing rapidly and has processed more than $5 million in volume since it was founded last year.
MassRoots plans to use public listing proceeds to repay bridge notes, develop new features for its mobile app and meet certain Nasdaq expenses (roughly $150,000 per year).
“This acquisition, when completed, will expand MassRoots’ offerings to include a full suite of dispensary software solutions – online ordering, marketing, and real-time inventory management— for cannabis businesses,” said Isaac Dietrich, CEO of MassRoots (OTCQB:MSRT).
“We could not be more excited to be joining forces with MassRoots, enabling Whaxy’s system to scale its transaction volume, provide new capabilities to our customers, and add more enterprise value far more rapidly than we would have on our own,” stated Zach Marburger, Whaxy founder and CEO.
The deal must be approved by regulators before it is complete.
About Scale Finance
Scale Finance LLC (www.scalefinance.com) provides contract CFO services, Controller solutions, and support in raising capital, or executing M&A transactions, to entrepreneurial companies. The firm specializes in cost-effective financial reporting, budgeting & forecasting, implementing controls, complex modeling, business valuations, and other financial management, and provides strategic help for companies raising growth capital or considering M&A/recapitalization opportunities. Most of the firm’s clients are growing technology, healthcare, business services, consumer, and industrial companies at various stages of development from start-up to tens of millions in annual revenue. Scale Finance has multiple offices in the Carolinas including Charlotte, Raleigh/Durham, Greensboro, and Wilmington with a team of more than 45 professionals serving more than 130 companies throughout the region.