Cannabis social media platform MassRoots announced Wednesday it has acquired CannaRegs, a website dedicated to helping marijuana companies stay on top of ever-changing industry regulations.
MassRoots – which trades on over-the-counter markets under the ticker symbol MSRT – purchased CannaRegs in a stock deal valued at roughly $12 million, according to a news release.
CannaRegs is cash flow positive and has annual revenue of at least $450,000 through client contracts, according to the release.
MassRoots CEO Isaac Dietrich said the acquisition will help his company ramp up their “compliance offerings” to customers while also helping his company bolster its income.
MassRoots also acquired Odava, an Oregon MJ software compliance firm, for an undisclosed sum last month.
That acquisition came alongside news that MassRoots was struggling financially, which followed news in May that the company needed to raise $5 million in the coming year “to continue to fund operations.”