MassRoots, a Denver-based operator of a cannabis-centric social network, is eyeing a listing on the Nasdaq exchange.
MassRoots (OTCQB: MSRT) filed an application for its shares to be listed on the Nasdaq Capital Market, officials announced Monday.
Moving to a tier of a major exchange from the over-the-counter market could bring further legitimacy to the burgeoning legal marijuana industry as well as bolster the company’s stature in the eyes of potential investors, officials said in a statement.
“We believe that uplisting to a national exchange like the Nasdaq would enable MassRoots to attract a broader range of institutional investors, increase share liquidity and help shift the paradigm about investing in the regulated marijuana market,” Isaac Dietrich, MassRoots chief executive officer, said in a statement.
Dietrich said via e-mail that the uplisting could be a multi-week process that presents several unknown variables — including whether the company would be successful in obtaining the listing.
MassRoots recently marked a milestone of having 500,000 users of its app, which was designed to help people find smoking buddies, locate dispensaries, and share posts, videos and photos of their cannabis-related experiences. In 10 days of “aggressively monetizing” its digital properties, MassRoots generated more than $25,000 in revenue, officials said last week.
Earlier this year, MassRoots acquired an equity stake in Denver-based Flowhub, a developer of cannabis-tracking software.
To be listed on the Nasdaq Capital Markets, MassRoots would have to meet one of three criteria that include financial and liquidity requirements such as having more than $4 million in stockholders’ equity, 1 million publicly held shares and bid or closing prices ranging from $2 to $4 per share.
Nasdaq officials declined to comment.
Alicia Wallace: 303-954-1939, firstname.lastname@example.org or twitter.com/aliciawallace