What happened? On Oct. 16, board members voted to remove Dietrich and install then-Vice President Scott Kveton following MassRoots’ deal to acquire CannaRegs – a technology platform that tracks federal and municipal cannabis regulations. Kveton and other board members believed the $12 million price was too steep. CannaRegs President Amanda Ostrowitz voided the deal two days after it was announced the board had voted to remove Dietrich.
On Nov. 14, MassRoots filed a lawsuit against the founder, alleging that Dietrich had paid himself and others without authorization amounts totaling $250,000; and committed “serious misconduct,” including “illegal drug use at the workplace,” and sexual misconduct, according to a Cannabist report, citing the complaint.
All the while, Dietrich remained the company’s largest shareholder and had threatened to hold a shareholder proxy vote to reinstate him; instead, on Dec. 12, three board members, Ean Seeb, Vincent Keber, and Terence Fitch, resigned from the company’s board, and Kveton resigned as CEO and left the company the following day, according to a Thursday 8-K filing. As part of the separation agreement, the board members received an undisclosed stock-and-cash package while Kveton received a $45,000 severance package and his 1.5 million-plus stock shares were “accelerated and vest immediately upon his resignation.”
“My slate of directors was appointed, Scott Kveton resigned today, and I was reappointed CEO. So it achieved everything the proxy aimed to achieve, but it was done much more rapidly and at a much lower cost.” – Dietrich to MJBizDaily
Charles Blum, former president and CEO of QS Energy; Cecil Kyte, Rightscorp CEO; and Nathan Shelton, former director of QS Energy, were named to the MassRoots board. The lawsuit has been dropped.
Get daily cannabis business news updates. Subscribe