MassRoots Inc. is continuing to expand its scope, announcing that they have struck a deal to purchase CannaRegs, a technology platform that tracks federal, state, and municipal cannabis regulations, for $12 million in stock. The deal follows MassRoots’ July acquisition of regulatory compliance firm Odava Inc., and a December 2016 transaction that saw the company procure DDDigital, the firm behind online canna-business ordering platform Whaxy, and custom application developer Cannabuild.
CannaRegs was founded in 2014 by former Federal Reserve regulator Amanda Ostrowitz, and has more than $450,000 in contractually-obligated annual revenue.
Isaac Dietrich, MassRoots CEO, said the deal “expands MassRoots’ compliance offerings, consolidating the most important operations for cannabis businesses into one central platform.”
“We expect with MassRoots’ resources and relationships, we can grow the number of businesses utilizing CannaRegs and significantly increase MassRoots’ contractually-obligated monthly recurring revenue,” he said in a press release.
Amanda Ostrowitz, CannaRegs founder and CEO, said the acquisition will allow CannaRegs to “be able to realize strong synergies” in the platform’s development and distribution.
“The cannabis industry is increasingly becoming compliance-centric and even minor changes in municipal regulations can have a significant impact on day-to-day operations,” she said in a statement. “CannaRegs has made it easy for businesses, regulators and attorneys to track regulatory changes in real-time, often for less than the cost of one billable hour.”
CannaRegs currently provides comprehensive cannabis laws for California, Colorado, Florida, and Nevada and plans to expand to other states with legal medical or recreational cannabis programs.
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