Regulated cannabis company MassRoots Inc (OTCQB:MSRT) disclosed on Thursday an agreement to acquire CannaRegs Inc in stock for approximately USD12m
Headquartered in Denver, Colorado, CannaRegs is a leading technology platform (Lexis Nexis of cannabis) that tracks changes in cannabis regulations and taxation at the municipal, state, and federal levels. It is a web-based subscription service that provides up-to-date enhanced access to all cannabis-related rules and regulations from municipal, county, state and federal sources. It currently provides comprehensive cannabis laws for the states of California, Colorado, Florida and Nevada, to be followed by all other states that permit medical and/or recreational marijuana.
Founded by former Federal Reserve regulator Amanda Ostrowitz in 2014, CannaRegs will be critical in helping the California adult-use market stay compliant. As one of the premier technology companies in the cannabis industry, CannaRegs is recognised for leading the movement with majority female leadership at its helm.
This acquisition, which is subject to closing conditions, is expected to cement MassRoots’s consolidation of the business-to-business software market, as well as enable businesses to easily update their operational procedures and report to regulators through the MassRoots platform.
In California alone, there are 539 local jurisdictions with different regulations, tax rates, and zoning laws related to the cannabis industry. With the upcoming adult-use market set to open in 2018, local jurisdictions are currently writing new regulations and cannabis entrepreneurs are doing their best to stay up-to-date.
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