DENVER-- MassRoots, Inc. (OTCQB: MSRT) and Odava, Inc., a leading regulatory compliance platform for the cannabis industry, have executed a Definitive Agreement for MassRoots to acquire Odava for cash and shares of MassRoots' common stock. Odava is an industry-leading platform technology that provides compliance, point-of-sale, and supply chain management for the cannabis industry. The closing of the acquisition is subject to certain closing conditions as detailed in MassRoots' Current Report on Form 8-K.
Through its point-of-sale and regulatory compliance system, Odava automates and streamlines business operations for cannabis dispensaries and cultivators. Since launching in beta of June 2016, Odava has been able to secure dozens of medical and recreational dispensary customers in the Oregon market.
The combination of the two companies is expected to create one of the largest technology conglomerates in the cannabis market and now will also be providing regulatory compliance, point-of-sale and consumer engagement programs for the entire industry.
"This acquisition expands MassRoots' offerings to dispensaries to include point-of-sale and regulatory compliance software, consolidating the most important operations for cannabis businesses into one central platform," stated MassRoots CEO Mr. Isaac Dietrich. "We expect with MassRoots' resources and relationships, we can grow the number of dispensaries utilizing Odava from dozens to hundreds by early next year. In the near future, we believe a significant percentage of all transactions occurring in the regulated cannabis industry will occur on our platform."
Currently, Odava offers end-to-end regulatory compliance and point-of-sale software to dispensaries and cultivators in Oregon. MassRoots plans to expand Odava's availability to the California, Nevada, Massachusetts, Colorado, Maryland and Florida cannabis markets during 2017 and 2018 through its current users and relationships. After the eight initiatives passed on November 8, 2016 are implemented, the Company estimates there will be roughly 2,800 dispensaries operating in the regulated cannabis industry and the value of combining our two business will create an ongoing revenue stream which then should increase shareholder value.
MassRoots also released an updated corporate overview deck, accessible here. For more detailed information, please see MassRoots' Current Report on Form 8-K filed with the U.S. Securities and Exchange Commission on July 5, 2017.