MassRoots, Inc. (“MassRoots” or the “Company”) (OTCQB:MSRT), a
technology platform for the regulated cannabis industry, is pleased to
release the following update on its planned acquisition of COWA Science
Corporation (“COWA”) in a stock-based transaction valued at
approximately $5.78 million, dependent upon COWA achieving revenue
milestones of $2.5 and $7.5 million (the “Planned Acquisition”). For
more information on the Planned Acquisition, please see the Company’s
Current Report on Form 8-K filed with the U.S. Securities and Exchange
Commission on February 12, 2019.
“As an applied physicist from Texas with a background in the oil and gas
industry, I am focused on commercializing technology and metrics that we
can measure: revenue and cash-flows generated from operations,” stated
Chris Alameddin, Chief Executive Officer of COWA Science Corporation.
“We respect the network and the numerous relationships MassRoots has
built over the past five years and we believe the synergies between our
two companies will result in our achievement of the revenue goals we’ve
set out for the fiscal year 2020. We look forward to closing this
transaction as early as this month and then working tirelessly on behalf
of MassRoots’ shareholders over the next several years.”
Based on the closing price of MassRoots’ common stock of $0.07 on April
12, 2019 and after giving effect to the fifty million shares issuable to
COWA’s shareholders upon closing of the Planned Acquisition, the market
capitalization of the combined companies post closing would be an
estimated $16.3 million.
“Numerous companies in the cannabis sector are trading at multiples of
5, 10, and even 25 times forward annual revenues,” stated Isaac
Dietrich, MassRoots’ Chief Executive Officer. “As providers of the
products and services that cannabis companies need to operate and grow
their businesses, MassRoots and COWA are and will be able to generate
revenue and gain market share in every state in which the sale of
cannabis is regulated. We believe the revenue goals stated in the
Planned Acquisition’s definitive agreements will be achieved during
fiscal year 2020 and this transaction will be immediately accretive to
MassRoots’ shareholders.”
MassRoots’ financial model is structured to capitalize on the trend of
states creating and expanding regulated cannabis markets. Because the
Company is not involved in the production or sale of cannabis, MassRoots
does not have to build grow facilities, open retail stores, hire
additional staff, apply for licenses, or have a physical presence in a
particular state in order to generate revenue. Further, as its financial
model is not tied to the success of a particular location or brand, we
believe the Company can have a significant percentage of all
dispensaries and brands on its platform, making MassRoots a play on the
cannabis industry as a whole.
Through the Planned Acquisition, MassRoots’ strategy is to establish
itself as a provider of products and technologies at every step of the
cannabis supply chain—from cultivators to dispensaries to consumers.
About MassRoots
MassRoots, Inc. is a leading technology platform for the regulated
cannabis industry. Powered by more than one million registered users,
the Company’s mobile apps empower consumers to make educated cannabis
purchasing decisions through community-driven reviews. Its rewards
program, WeedPass™, enables consumers to earn tickets to movies,
sporting events, and festivals by shopping at participating
dispensaries. MassRoots has been covered by CNN, CNBC, Fox Business,
Fortune, Forbes, and Reuters. For more information, please visit www.MassRoots.com/Investors and
review MassRoots’ filings with the U.S. Securities and Exchange
Commission.
Forward-looking Statements
This press release contains certain forward-looking statements within
the meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. These statements are identified by the
use of the words “could,” “believe,” “anticipate,” “intend,” “estimate,”
“expect,” “may,” “continue,” “predict,” “potential,” “project” and
similar expressions that are intended to identify forward-looking
statements. All forward-looking statements speak only as of the date of
this press release. You should not place undue reliance on these
forward-looking statements. Although we believe that our plans,
objectives, expectations and intentions reflected in or suggested by the
forward-looking statements are reasonable, we can give no assurance that
these plans, objectives, expectations or intentions will be achieved.
Forward-looking statements involve significant risks and uncertainties
(some of which are beyond our control) and assumptions that could cause
actual results to differ materially from historical experience and
present expectations or projections. Actual results to differ materially
from those in the forward-looking statements and the trading price for
our common stock may fluctuate significantly. Forward-looking statements
also are affected by the risk factors described in the Company’s filings
with the U.S. Securities and Exchange Commission. Except as required by
law, we undertake no obligation to update or revise publicly any
forward-looking statements, whether as a result of new information,
future events or otherwise, after the date on which the statements are
made or to reflect the occurrence of unanticipated events.
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