Board at marijuana social media giant MassRoots ousts CEO

The board of directors at MassRoots, the cannabis-focused technology and social media giant, has fired CEO and founder Isaac Dietrich amid financial difficulties plaguing the Denver company.

The move was first reported by Benzinga.

MassRoots has been suffering from a high cash-burn rate and declining revenues.

Dietrich repotedly knew the vote was coming and spent last weekend trying to persuade MassRoots’ shareholders to fire the board.

But the board was able to oust Dietrich first, Forbes reported.

The board named vice president Scott Kveton as the new CEO.

Kveton was director of business development at Odava, a company that makes compliance and supply management software for marijuana businesses.

MassRoots acquired the company in July as part of a broader acquisition strategy that sought to move it away from its social media roots to other technology businesses.

Forbes also said Dietrich had come under suspicion of stock promotion.

At least some of MassRoots’ shareholders are upset with Dietrich’s firing, however. Forbes claims he could be reinstated if enough shareholders want to fire the board.

MassRoots, which trades on the OTC market under the MSRT ticker symbol, closed Monday trading at 33 cents per share, down 10 cents, or 23.26%, from where it started the day.

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5 comments on “Board at marijuana social media giant MassRoots ousts CEO
  1. Brett Roper on

    While I know Isaac and most of the Board, MSRT has to chart a course that investors can believe in as well as get the Company to cash flow sufficiency so … whether or not it involves the Board’s action being upheld, Isaac’s return and the Board’s possible dismissal, Amanda’s CannaRegs business value potential being realized, Odava’s ability to generate new business and ramp up quickly, or Kveton providing new guidance … something nonetheless has to be done. Oh yes, and creating that something is never easy or simple so I am sending my best thoughts to all MSRT focused folks for a speedy resolution to the challenges ahead.

  2. Marc Rudick on

    I am very pleased that Alan Brochstein showed me the way out of this one long ago , because i really liked their story early on.

  3. Ken Loritz on

    This is my opinion. Cannabis margins are on a race to the bottom right now. Everybody sees Cannabis as a gold mine. There is only so much gold, “customers with money that want the product they consume”
    Everybody is fighting or soon will be fighting for that finite market share. Price is the weapon on choice so good luck to those who are leveraged with debt. Scale your business by incurring debt, scale your liquidation that much earlier.

    Companies burn thru cash in hopes of promised future market share/ margins. Don’t invest in Cannabis stocks if you do not do you homework first. Go to a trade show and listen real good. Just ask about margins, they are not going up in the industry I am in. Packaging for cannabis.

    Capitalism gets rid of dead wood.

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