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.