LOS ANGELES--(BUSINESS WIRE)--MassRoots, Inc. ("MassRoots" or the "Company") (OTCQB:MSRT), one of the leading technology platforms for the regulated cannabis industry, announced today that its planned acquisition, COWA Science Corporation (“COWA Science”), received sales orders for an aggregate purchase value of over $275,000 in January 2019. Not all sales orders have been fulfilled and there can be no assurances COWA Science will realize the revenue of these orders.
COWA Science provides small and mid-sized operators the scale and cost advantages of their larger competitors by leveraging the collective purchasing power of its network, similar to Farmers Business Network and Chempoint® in agriculture and industrial chemicals, respectively. This empowers entrepreneurs to compete with larger, multi-state operators while maintaining their local roots and independence.
There are approximately 9,397 active licenses for marijuana businesses in the United States, according to Cannabiz Media, and many localities require local ownership or control of those businesses as part of the licensing process.
“By developing a network of small businesses, we are creating a sales and distribution channel through which we can offer products and technologies at every step of the cannabis supply chain—from cultivators to dispensaries to consumers,” stated Mr. Christopher Alameddin, COWA Sciences’ Chief Executive Officer. “This allows operators, especially those with limited staff, to stay focused on their core business while we handle their supply chain needs.”
MassRoots has entered into a definitive agreement (the “Agreement”) to acquire COWA Science Corporation for common-stock consideration valued at approximately $5.78 million, and dependent on COWA Science achieving revenue milestones of $2.5 million and $7.5 million. The closing of the Agreement is subject to the satisfaction of customary closing conditions, including the completion of audited financial statements of COWA Science. In the event that the Agreement has not been closed by May 15, 2019, MassRoots may terminate the Agreement by providing written notice to COWA Science.
For more information, please see the Company’s Current Report on Form 8-K filed with the U.S. Securities and Exchange Commission on February 12, 2019.
MassRoots, Inc. is one of the leading technology platforms for the regulated cannabis industry. Powered by more than one million registered users, the Company's mobile apps empower consumers to make educated cannabis purchasing decisions through community-driven reviews. The Company’s rewards program, WeedPassTM, enables consumers to earn tickets to movies, sporting events, and festivals by shopping at participating dispensaries. MassRoots has been covered by CNN, CNBC, Fox Business, Fortune, Forbes, and Reuters. For more information, please visit www.MassRoots.com/Investors and review MassRoots' filings with the U.S. Securities and Exchange Commission.
This press release contains certain forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are identified by the use of the words "could," "believe," "anticipate," "intend," "estimate," "expect," "may," "continue," "predict," "potential," "project" and similar expressions that are intended to identify forward-looking statements. All forward-looking statements speak only as of the date of this press release. You should not place undue reliance on these forward-looking statements. Although we believe that our plans, objectives, expectations and intentions reflected in or suggested by the forward-looking statements are reasonable, we can give no assurance that these plans, objectives, expectations or intentions will be achieved. Forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause actual results to differ materially from historical experience and present expectations or projections. Actual results to differ materially from those in the forward-looking statements and the trading price for our common stock may fluctuate significantly. Forward-looking statements also are affected by the risk factors described in the Company's filings with the U.S. Securities and Exchange Commission. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.