This is Huge News! NASDAQ will not “Aid and Abet” the sale of a substance that is deemed illegal by the Federal Government!
By: Matt Rego
Shares of MassRoots, Inc. (OTCQB: MSRT) declined 20% within the first hour of trading on May 24, 2016 on heavy volume. Over 155,000 shares had changed hands within the first hour or around $101,550 in dollar volume.
The Denver, Colorado-based, marijuana technology company received a notice on May 24th from the Nasdaq, explaining that the stock exchange had denied MassRoots, Inc. (OTCQB: MSRT)’s application for listing on the Nasdaq exchange. The Nasdaq said the denial was due to the company position in “aiding and abetting” the sale of a substance that is deemed illegal by the federal government.
MassRoots, Inc. (OTCQB: MSRT)’s CEO, Isaac Dietrich, denounced the ruling and said the company plans to file an appeal to the decision. Dietrich also stated that the Nasdaq’s ruling could have a ripple effect across other marijuana companies that are listed on stock exchanges. Here is the press release of the Nasdaq denial:
DENVER, CO / ACCESSWIRE / May 24, 2016 / MassRoots, Inc. (MSRT), one of the largest and fastest growing technology platforms for the cannabis industry, received notification on Monday, May 23, 2016, that the Nasdaq has denied MassRoots’ application for listing, which was filed in August 2015. The Nasdaq determined that as MassRoots may be deemed as “aiding and abetting” the distribution of an illegal substance under Federal law, they are unwilling to proceed with MassRoots’ listing application. MassRoots plans to appeal the staff decision to the Nasdaq Listing and Qualifications Board.
“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. 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,” stated MassRoots CEO Isaac Dietrich. “This decision must not be allowed to stand and we’re asking cannabis supporters, activists businesses, and investors to write a brief note to the Nasdaq in support of our planned appeal here.”
“If we were a social network for tobacco users or alcohol consumers, the Nasdaq would likely be moving forward on our application even though alcohol and tobacco cause far more deaths and societal damage than cannabis ever will. Moreover, the Nasdaq has already listed at least 3 biotechnology companies that extract compounds from the cannabis plant for scientific research – actually touching the plant as part of their business model,” continued Dietrich. “We believe the Nasdaq has inappropriately denied our application and look forward to making our case not just to the Nasdaq Listing and Hearings Review Board, but directly to the American public.”
MassRoots has requested the Nasdaq’s denial letter in writing and will file an 8-K within 4 business days of receipt. The Company plans to appeal the Nasdaq’s decision shortly thereafter. MassRoots no longer plans to affect a reverse stock split.
MassRoots is one of the largest and most active technology platforms for cannabis consumers, businesses and activists with 900,000 users. It is proud to be affiliated with the leading organizations in the cannabis industry, including the ArcView Group and National Cannabis Industry Association. MassRoots has been covered by Fox Business, CNBC, Fortune, BBC, Cannabist and the New York Times. For more information, please visit MassRoots.com/Investors.
This information does not constitute an offer to sell or a solicitation of an offer to buy securities or assets of MassRoots. All information presented herein with respect to the existing business and the historical operating results of MassRoots and estimates and projections as to future operations, the success of events that we are attending, and other information, is based on materials prepared by the management of MassRoots and involve significant elements of subjective judgment and analysis which may or may not be correct. While the information provided herein is believed to be accurate and reliable, MassRoots makes no representations or warranties, expressed or implied, as to the accuracy or completeness of such information. In furnishing this information, MassRoots reserves the right to amend or replace some or all of the information herein at any time and undertakes no obligation to provide the recipient with access to any additional information.
Certain matters discussed in this announcement contain statements, estimates and projections about the growth of MassRoots’ advertising business, potential partnerships, and our related business strategy. Such statements, estimates and projections may constitute forward-looking statements within the meaning of the federal securities laws. Important factors that could cause our actual results to differ materially from those anticipated by the statements made herein include, among others, the success of our advertising initiatives, the continued growth and engagement of our user base, our ability to work with partners of the Company, and unforeseen technical or other problems or issues that could affect the performance of our products or our business. Further information on our risk factors is contained in our filings with the SEC, including the Amendment to our S-1 Registration Statement filed on October 29, 2015. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. MassRoots undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The recipient of this information is cautioned not to place undue reliance on forward-looking statements.
SOURCE: MassRoots, Inc.