MJ social network MassRoots misses loan payments

MassRoots, the popular social network for cannabis enthusiasts, missed payments to some of its creditors, a notable turn of events for the once high-flying Denver company.

MassRoots disclosed in a Sept. 21 Securities and Exchange Commission filing that it didn’t make $966,000 in required payments to creditors who bought six-month convertible secured promissory notes from the company in March, according to BusinessDen.com.

The company received a notice of default from the creditors for failing to make the payments.

Less than six months ago, MassRoots sought a listing on the Nasdaq stock market – a bid that ultimately failed. The Denver company started the year rubbing elbows with billionaire Sir Richard Branson.

Since 2013, MassRoots has raised more than $5 million in capital. It launched a $3 million funding round in February.

A major, publicly traded hospitality company and a MassRoots’ creditor, DiamondRock, set off the default after seeking to convert $25,000 in promissory notes on Sept. 20, BusinessDen.com reported.

MassRoots launched in 2013, started generating ad revenue in 2015, and now has about 900,000 users. MassRoots said in a recent earnings report that it has signed $320,000 in advertising contracts during the first quarter of this year.

 

One comment on “MJ social network MassRoots misses loan payments
  1. Steve Lach on

    Massroots was bogus flufff from day 1. BS backed by self absorbed hustlers who preyed on naive newcomers to the legalization movement. Hope they go to federal prison for a long stretch.

    Reply

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