MassRoots, the popular social network for cannabis enthusiasts, is taking another shot at getting listed on the Nasdaq.
The Colorado-based company filed an S-1 registration form on Monday with the Securities and Exchange Commission to raise up to $6.5 million by selling shares and warrants – a key part of the process for getting listed on the Nasdaq.
MassRoots first applied to trade on the exchange last August and filed an earlier S-1 registration form with the SEC in November.
The company, however, failed to meet all of the Nasdaq’s listing requirements.
Most notably, it needed to raise $5 million to meet a shareholder’s equity requirement, but it was only able to secure about $1 million.
This time around, Chardan Capital Markets, a privately held New York investment bank, has reportedly committed to invest $6.5 million in MassRoots.
The company is in its “quiet period” and cannot comment about the offering.
Nasdaq approval would mark a groundbreaking development for the cannabis industry and marijuana stocks at large. To date, nearly all U.S.-based publicly traded cannabis companies are listed on the thinly traded, highly volatile over-the-counter markets.
The Nasdaq has a couple of weeks to issue a formal letter either accepting or rejecting MassRoots’ bid.
MassRoots, which now has about 775,000 users, is listed on the over-the-counter market under the symbol MSRT. Its stock currently trades around $1.50.
According to its annual report, MassRoots had revenue of nearly $214,000 and a net loss of $8.47 million in 2015.