$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.
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.
Here’s the intro to the Forbes report
In a stunning coup, MassRoots‘ board 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.