According to a Forbes report, MassRoots’ board of directors has voted to remove founder and CEO Isaac Dietrich and install Vice President Scott Kveton in the role. The move comes after MassRoots’ August acquisition of CannaRegs for $12 million in stock, which Kveton believed was too steep a price, the report says.
Amanda Ostrowitz, CannaRegs founder and CEO, was named president of MassRoots in conjunction with the deal. Ostrowitz, who was out of the country at the time of the vote, defended the high price because the company was debt-free with revenues of $500,000 per year and she had been offered $10 million in private investment.
The report indicates that Dietrich had actually secured a majority of shareholder support to remove the board and, while Dietrich confidants claim the vote to remove the board took place, there was no 8-K filing, which would have been required if such an action occurred.
Dietrich had come under fire this past summer when it was suspected he paid for stock promotions. According to the report, last week MassRoots paid $18,000 to two stock promotors – $15,000 to Small Cap Leader and $5,000 to Stock Commander – for newsletter mentions.
According to one large shareholder, many other shareholders are now upset with the board’s decision to oust Dietrich and the shareholders could vote to remove the board and reinstate the founder.
Do you work for a cannabis brand? Take our 5-minute survey to help us report on the industry: Click Here