MassRoots receives $2M in proceeds from warrant exercise

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MassRoots, the popular social network for cannabis enthusiasts, said it has received more than $2 million in cash from the exercise of warrants so far in 2017, providing additional financial stability to the once-wobbly Denver company.

“This capital infusion will help us continue building momentum with the success we are having within the rapidly emerging legal cannabis industry,” MassRoots CEO Isaac Dietrich said in a news release. “We can now better focus our attention toward increasing revenue, expanding our market presence and enhancing overall shareholder value.”

The company rode something of a financial roller coaster last year.

In September, MassRoots missed payments to some of its creditors, owing $966,000 to investors who bought six-month convertible secured promissory notes from the company in March 2016.

But the company quickly recovered, paying back its debt the next month and then securing $1.1 million in new funding. Dietrich led that funding round, with former CEO Steve Markowitz also among the contributors. That funding announcement came as the company closed on $3.2 million in equity financing under an offering that was launched last August.