Popular social media app MassRoots was denied its attempt to listing its stock on the NASDAQ exchange Monday claiming the social platform of aiding and abetting the distribution of an illegal substance striking a blow to cannabis companies as a whole to enter a reputable market.
MassRoots CEO Isaac Dietrich said in a statement that, “With this decision, the NASDAQ has set a dangerous precedent that will prevent nearly every company in the regulated cannabis industry from listing on a national exchange. This will have ripple effects across the entire industry, making it more difficult for cannabis entrepreneurs to raise capital and slow the progression of cannabis legalization in the United States,”
Dietrich also mentioned that he is now asking for support from other cannabis investors, businesses and activists to write a note to NASDAQ in support of an appeal. He will also be appealing the decision to the Nasdaq Listing and Hearings Review Panel and if they deny he will appeal to the Securities and Exchange Comission (SEC). With an appeal coming in the future Dietrich isn’t worried about what’s to come.
"In the cannabis industry, we face setbacks every day that other industries don't face," Dietrich said. "But we move forward."
MassRoots was launched in July 2013 and is an App-based social network dedicated entirely to marijuana consumers that has grown from a small user base to nearly 1 million users since. MassRoots is currently one of the largest and fastest growing technology platforms in the market today employing 33 employees and has raised $6.5 million in funding.