Cannabis social media and technology platform MassRoots, Inc. has agreed to acquire regulatory compliance firm Odava, Inc. for cash and shares of MassRoots common stock. Currently, Odava offers its point-of-sale and end-to-end regulatory compliance services to dispensaries in Oregon, and MassRoots plans on expanding those services to Colorado and Alaska this year, and to California and Florida in 2018.
Additionally, the company anticipates rolling out the platform in Nevada, Massachusetts, and Maryland.
MassRoots CEO Isaac Dietrich said the company plans on using their current resources and relationships to “grow the number of dispensaries utilizing Odava from dozens to hundreds by early next year.”
“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,” he said in a press release. “In the near future, we believe a significant percentage of all transactions occurring in the regulated cannabis industry will occur on our platform.”
The deal will see the two founders of Odava, Scott Kveton and Steven Osborn, paid $35,000 in cash and move into roles with MassRoots, where they will receive a $50,000 bonus after one year of continuous employment, according to MassRoots’ July 5 corporate overview documents. Current Odava shareholders will receive 3,250,000 shares of MassRoots common stock.
MassRoots’ Board of Directors has approved the deal.