The adjectives come thick and fast in this op ed
Here it is in full.
For one reason they let you jump at the link to remind you that it was the Canna-Regs purchase that contributed to their demise.
We’re wondering if all this appalling publicity will kick Canna-Regs in the teeth. Will they be seen as the destroyer of Mass Roots ?
Here’s the op ed in full…
Readers of New Cannabis Ventures likely weren’t surprised to read elsewhere this week that things aren’t going so well for MassRoots, which is in total disarray apparently and down to just four employees. The writing was on the wall, in our view, when the company signaled its desperation, as we pointed out, by betting on an expensive acquisition that was intended to leverage its totally unproven sales abilities.
Let’s face it: MassRoots was a huge disappointment. The company will report Q3 results in the next few days (and they will be disastrous), but through Q2 it had generated sales of only $277K while somehow managing to produce an operating loss of $19.5mm ($4.1mm excluding stock compensation). The company never executed well, the young CEO was always more focused on the heavily promoted stock rather than operational success, and the exit of all of the co-founders (with lots of stock that they then sold) was a red flag. As a public company, MassRoots was required to disclose information that showed the reality never matched the hype.
The failure of MassRoots is not the failure of the cannabis industry but rather poor execution. MassRoots identified a great opportunity, went public in a way that allowed it to raise substantial capital and did an incredible job of building a large community but then was unable to leverage its audience. Our industry is moving very quickly, and we will likely see other failures. At the same time, those entrepreneurs who get it right and execute well will be rewarded along with those who invest in them. We look forward to reporting those stories in the months and years ahead.