MassRoots Inc. (OTCMKTS:MSRT) Gets Uprooted And Trampled

MassRoots Inc. (OTCMKTS:MSRT) had another nasty crash yesterday, falling hard for a third session in a row – but how low can this tumble take it?

It all started with the analysis summary and review that was put up by Axelrodnews.com on Tuesday. Although the review was obviously heavily biased towards a couple of tickers, heaping unwarranted praise on them while not sparing criticism on others, it did make a reasonably good job of assessing MSRT‘s situation.

Put quite simply, the review drew attention to MSRT‘s unimpressive nature, and as a result, the ticker has been falling ever since. This is bad news, because the fact that the “420” week hype that allowed so many other pot-stock tickers to surge did not even slow MSRT‘s descent is not reassuring at all. But then again, neither are the company’s actual achievements to date.

As we have mentioned in the past, MSRT‘s latest financial report is a truly horrifying read:

• cash – $386 thousand
• current liabilities – $194 thousand
• annual revenues – $213 thousand
• annual net loss – $8.4 million

And if you think that’s the worst that said report can throw at you – guess again.

Although MSRT hasn’t really drowned investor value in dilution since the start of 2015, in the same way many other companies in the branch did and keep doing, reading through the the above mentioned report shows that there are currently $1.5 million worth notes that can, upon the maturity of a note, be converted into common stock at a fixed price of $1 or at a 25-35% discount to the “price at which the Company next conducts an offering after the issuance date of the note”.

Additionally, there are still a couple of hundred thousand warrants for the purchase of MSRT common stock at a fixed price of $1.06 floating around right now.

This being the case, is it really any wonder that the ticker failed to hold its ground under scrutiny? We should think not, just as it shouldn’t be a surprise to see it sink even further down for at least a couple more of the sessions to come.