In another sign that marijuana is becoming big business, MassRoots, a Colorado-based social network for cannabis lovers, is planning to go public with a secondary stock offering on Nasdaq, according to the Denver Post, which first reported the news. Funds raised from new investors will be used to expand MassRoots’ business-facing services, develop new mobile app features and expand the user base.
Per documents filed with Securities and Exchange Commission, MassRoots has applied for “uplisting” to the Nasdaq Capital Market, which should allow traders to buy and sell shares in MassRoots on the exchange rather than “over the counter,” exposing it to a much larger group of potential investors. According to the Denver Post the penny stock is currently trading around $1.57.
The listing would make MassRoots the first cannabis-related company traded on a big U.S. exchange outside the biotech category. It claims around 775,000 users for its platform, which allows people to share all kinds of content, including recipes for edible marijuana and technical information about different strains and varieties, cultivation techniques, and so on.
MassRoots won a big victory last year when Apple lifted its ban on the app in its app store, originally implemented over concerns about violating the law in states where marijuana remains illegal. Apple originally gave MassRoots the boot back in November, citing a policy against “apps that encourage excessive consumption of alcohol or illegal substances.” MassRoots had to restrict the availability of the app geographically so it can only be downloaded in states where marijuana has been legalized for medical or recreational purposes.
Of course, MassRoots isn’t the only pot-focused social app. Another app, Leafly, provides information about marijuana strains, products and legal sellers, including myriad user-generated reviews. Legal pot e-commerce is also a fast-growing area, with players like the Where’s Weed app.