MassRoots, the marijuana-centric Denver social media and technology giant, filed documents with the U.S. Securities and Exchange Commission Wednesday morning confirming the ouster of the company’s founder and CEO, Isaac Dietrich.
In its Form 8-K filing, MassRoots also confirmed that it elevated a company vice president, Scott Kveton, to become the new CEO.
Kveton had been director of business development at Odava, a compliance and supply chain management company that MassRoots acquired in July. He signed Dietrich’s separation agreement.
Under the separation pact reached between MassRoots and Dietrich, the former CEO will receive a severance package equal to four months of his monthly salary of $7,916.66, or $31,666.64.
But the company also retained the right to review expenses Dietrich incurred since July 25, 2017. If it determines that some expenses shouldn’t have been put on MassRoots’ tab, the company has the right to seek reimbursement of up to $25,000.
The agreement also prohibits Dietrich from taking legal action against or saying anything defamatory or malicious about MassRoots and its employees. Dietrich’s last day was Monday.
The company’s stock continues to decline under heavy trading volume. MSRT shares started the day at just under 28 cents – 36% below the 44 cents per share at which it opened the week – and by 11 a.m. were down 13% to 25 cents per share. The company’s 52-week high is $1.18.