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MassRoots’ (MSRT) NASDAQ Denial Has Big Implications

Ryan Allway

May 24th, 2016

News, Top Story

[stockchart symbol=MSRT]

MassRoots Inc. [stockquote symbol=MSRT] (Free Analysis), one of the largest and fastest growing technology platforms for the cannabis industry, recently announced that the NASDAQ denied its application for listing on the grounds that it would be “aiding and abetting” the distribution of illegal substances under federal law. While the company plans to appeal the decision, it could have widespread implications for the cannabis industry.

“With this decision, we believe that the NASDAQ has set a dangerous precedent that could prevent nearly every company in the regulated cannabis industry from listing on a national exchange,” said MassRoots Inc. CEO Isaac Dietrich. “This will have ripple effects across the entire industry, making it more difficult for cannabis entrepreneurs to raise capital and slow the progression of cannabis legalization in the United States.

Many venture capitalists funding the cannabis industry rely on big exits in order to recoup their investment. Often times, this means having their portfolio companies acquired or having them go public on a national exchange like the NASDAQ. The inability to list on a national exchange eliminates a major exit strategy for these venture capitalists and may keep some of them from entering the cannabis industry at all until federal laws are changed.

The move could also hurt individual investors seeking to invest in the cannabis industry without worrying about liquidity risk. Currently, investors are limited to public companies trading over-the-counter or privately held companies with no secondary market. Since many institutional investors cannot invest in OTC companies, these stocks have very little liquidity relative to companies that trade on a national exchange.

The good news is that MassRoots plans to fight back and it won’t be the first time it has done so against an entrenched organization. In 2015, the company overwhelmingly won the popular vote in Startup Alley at Tech Crunch Disrupt, but the organization used editorial discretion to over-rule the vote and prevent the company from competing. The subsequent outcry led the organization to later redeem itself by opening competition to cannabis firms.

The company also faced an uphill battle against Apple after its iOS app was removed from the App Store due to concerns about the federal prohibition. After petitioning the organization to reverse its decision, the app was relisted on the App Store.

Shares of MassRoots Inc. are trading even at $0.90 per share on early Tuesday morning.

This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.

About Ryan Allway

Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.

Disclaimer: Except for the historical information presented herein, matters discussed in this article contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, may from time to time have a position in the securities mentioned herein and will increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity- based compensation in the companies it writes about, or a combination of the two. For full disclosure please visit: https://www.cannabisfn.com/legal-disclaimer/.

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About CFN Media Group

CFN Enterprises Inc. (OTCQB: CNFN) owns and operates CFN Media Group, the premier agency and financial media network reaching executives, entrepreneurs and consumers worldwide. Through its proprietary content creation, video library, and distribution via www.CannabisFN.com, CFN has built an extensive database of cannabis interest, assisting many of the world’s largest cannabis firms and CBD brands to build awareness and thrive. For more information, please visit www.cfnenterprisesinc.com.

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