MassRoots, the publicly traded cannabis-centric social media site, said Friday it has repaid its creditors after disclosing last month it had missed nearly $1 million in payments that were due to holders of its convertible notes.
“We’re excited to have this debt fully repaid and behind us. We expect MassRoots will be cash-flow positive on a monthly basis by the end of the year,” MassRoots CEO Isaac Dietrich said in a news release filed with the Securities and Exchange Commission.
The Denver company said last month it had missed some $966,000 in payments due on six-month convertible secured promissory notes that were issued in March. The situation led some observers to speculate that the company’s future could be in jeopardy.
In Friday’s news release, Dietrich suggested that the November election – in which nine states will vote on pro-cannabis ballot initiatives – could be directly tied to MassRoots’ long-term success.
“The 2016 election cycle has the potential to significantly expand MassRoots’ userbase and revenues,” Dietrich said.
The company said in its SEC filing Friday that since the notes were issued in March it has paid nearly $1.5 million in cash to holders of the securities.