NEWS BRIEF

Cannabis tech firm MassRoots to acquire logistics business COWA Science for $5.8M

(This story has been revised to correct the revenue figures for the three months ended in Sept. 30, 2018, and the year-earlier period.)

Marijuana technology firm MassRoots – which has been struggling financially – said it agreed to acquire COWA Science, a cannabis-focused logistics and supply chain firm, in a stock deal valued at $5.8 million.

MassRoots CEO Isaac Dietrich said in a news release the company “is confident” the acquisition “will increase overall revenues and expand our market presence, with the goal of generating positive cash-flows from operations.”

According to the release, COWA generated unaudited revenue of approximately $1.5 million in fiscal year 2018 from 50 cannabis and hemp-related clients.

MassRoots, which trades as MSRT in the over-the-counter market, has been hit by falling sales.

In its latest quarterly financial filing, MassRoots said it generated just $4,014  in revenue for the three months ending Sept. 30, 2018, down from $11,516 a year earlier.

At the same time, the company reported a net loss of $4.5 million, narrowing from $7.1 million the previous year.

Last June, MassRoots pivoted and offered a new dispensary business portal for a subscription fee in an attempt to generate more revenue.

Here’s what you need to know about MassRoots’ planned acquisition of Colorado-based COWA Science:

  • COWA provides products and services for cultivators, distributors and other ancillary companies.
  • MassRoots hopes the deal will allow both companies to provide clients with advertising services, cultivation-related products, consumer packaging, product development and other marijuana-related products and services.
  • The agreement is dependent on COWA achieving annual revenue milestones of $2.5 million and $7.5 million.

MassRoots relocated to Los Angeles from Denver last August. COWA is based in Longmont, Colorado.

Latest Headlines

One comment on “Cannabis tech firm MassRoots to acquire logistics business COWA Science for $5.8M

Leave a Reply

Your email address will not be published. Required fields are marked *