$12 million was too steep a price to pay for CannaRegs and now Mass Roots founder & CEO,Isaac Dietrich, is no longer.

The board have had enough and replaced him with Vice President Scott Kveton.

Ganjapreneur report

According to a Forbes report, MassRoots’ board of directors has voted to remove founder and CEO Isaac Dietrich and install Vice President Scott Kveton in the role. The move comes after MassRoots’ August acquisition of CannaRegs for $12 million in stock, which Kveton believed was too steep a price, the report says.Amanda Ostrowitz, CannaRegs founder and CEO, was named president of MassRoots in conjunction with the deal. Ostrowitz, who was out of the country at the time of the vote, defended the high price because the company was debt-free with revenues of $500,000 per year and she had been offered $10 million in private investment.

The report indicates that Dietrich had actually secured a majority of shareholder support to remove the board and, while Dietrich confidants claim the vote to remove the board took place, there was no 8-K filing, which would have been required if such an action occurred.

Dietrich had come under fire this past summer when it was suspected he paid for stock promotions. According to the report, last week MassRoots paid $18,000 to two stock promotors – $15,000 to Small Cap Leader and $5,000 to Stock Commander – for newsletter mentions.

According to one large shareholder, many other shareholders are now upset with the board’s decision to oust Dietrich and the shareholders could vote to remove the board and reinstate the founder.

MassRoots Board of Directors Remove Founder as CEO, Install VP

Here’s the intro to the Forbes report

https://www.forbes.com/sites/debraborchardt/2017/10/16/massroots-board-removes-ceo-isaac-dietrich/#144539b26685

In a stunning coup, MassRootsboard of directors has voted to oust the company’s founder and CEO, Isaac Dietrich, and install Vice President Scott Kveton as the new CEO, while the company’s new president, Amanda Ostrowitz, is out of the country.

Dietrich has been losing the support of the board as the company burned through cash, while revenues continued to drop. Dietrich had been making small acquisitions to shift the company from its roots as the “Facebook” of cannabis to a compliance and cannabis tech company. One of the companies he acquired, Odava, brought Kveton into the company this past July as the new Director of Business Development. Then Dietrich agreed to acquire the legal compliance company CannaRegs for $12 million and named its CEO, Ostrowitz, as the President of MassRoots. Supposedly, Kveton was unhappy with the move and believed the price paid for CannaRegs was too high.