Cannabis social media platform MassRoots raises $1.2 million

MassRoots – a popular marijuana-focused social media platform based in Denver – has closed a $1,217,000 private placement of common stock and warrants.

The transaction follows the company’s late-May report in a financial filing that it was running low on capital and would need to raise $5 million in the next year to stay in business.

Chairman Isaac Dietrich – the only MassRoots shareholder with stakes greater than 5% – participated in the offering with unidentified “accredited investors” that include “family offices and high net worth individuals,” the company said in a news release.

The company also announced the acquisition of Odava, a Portland, Oregon, firm that produces point-of-sale and regulatory compliance software for cannabis dispensaries and plant tracking software for grow sites. The sales price wasn’t announced.

Odava is able to interface with the cannabis regulatory software Marijuana Enforcement, Reporting, Tracking and Compliance. Metrc was developed by Franwell and is used in several marijuana states, including California.

MassRoots – which trades as MSRT on the over-the-counter markets – said the acquisition will benefit Odava company as it competes against other software firms seeking business from retailers in California as that market goes online.