Massroots, a technology platform for cannabis consumers, is acquiring CannaRegs in a stock deal for $12 million, multiple sources told Business Insider on Wednesday.
The acquisition allows MassRoots to become a one-stop shop for cannabis businesses to connect with customers and ensure they’re in compliance with all state and federal regulations, Massroots CEO Isaac Dietrich told Business Insider in a phone call on Wednesday.
The acquisition is part of a larger push to consolidate Massroots’ business-to-business offerings. Massroots, founded in 2013, is a user-driven social media platform for marijuana consumers. The company is now seeking to expand its software services.
It “expands MassRoots’ compliance offerings, consolidating the most important operations for cannabis businesses into one central platform,” Dietrich said.
CannaRegs, started in 2014 by Amanda Ostrowitz, a former Federal Reserve regulator and licensed attorney, is a subscription-based service that provides businesses access to all local, state, and federal cannabis-regulations.
Dietrich notes that CannaRegs is cash-flow positive and debt-free, and it’s one of the few cannabis companies with majority-female leadership…
Finish reading: Marijuana social media company Massroots is making a big bet on software