Consumer Products

Cannabis Social Network MassRoots Wants a Nasdaq Listing

cannabis
Source: Thinkstock
Earlier this week, Denver-based social network for cannabis users, MassRoots, filed an application to have its shares listed on the Nasdaq. The network claims to have 500,000 members and about 1,000 business profiles, of which some 50 have signed advertising agreements.

Nasdaq does not comment on listing applications, but according to The Cannabist, the exchange may set additional conditions or deny a listing altogether if it decides that such a decision is necessary “to protect investors and the public interest.”

Two other cannabis-related companies are already listed on the Nasdaq: U.K.-based GW Pharmaceuticals PLC (NASDAQ: GWPH) and Insys Therapeutics Inc. (NASDAQ: INSY). Both are medical marijuana companies.

Among the conditions that MassRoots must meet are a share price of at least $3, more than double its current share price of $1.40 on the OTC Venture Marketplace, where it trades under the ticker symbol MSRT.

MassRoots offers a free app designed to function as a social space where users can find other cannabis users to smoke with, locate dispensaries and share posts, videos and photos.

Neither Facebook nor Twitter permits cannabis-related businesses and dispensaries to advertise on their social media platforms. And that advertising market is MassRoots’s target. The company said in late August that it generated more than $25,000 in ad revenues in the first 10 days of aggressively working to monetize its digital properties.

In its quarterly filing for the second quarter, MassRoots reported revenues of $2,126 and expenses of $1.49 million. Of 200 million shares of stock authorized, the company reported 44.5 million issued and outstanding. At the current trading price of $1.40, the company’s market cap is $62.3 million. The stock’s 52-week range is $0.80 to $7.01.

ALSO READ: The Next 11 States to Legalize Marijuana