MassRoots, Inc. (OTCMKTS:MSRT) Lifted by News

After an ugly slide that shaved more than 45% off the share price of MassRoots, Inc. (OTCMKTS:MSRT) in just three sessions, the company sprang back to life yesterday. Driven by a weekend news release, the company managed to close green in double digits. MSRT was 13% up by the closing bell on volume of 202 thousand shares traded.

MSRT is new to the stock market but is not new to business. The company’s mobile app reportedly had 100,000 users back in early 2014 and that number has grown to 275,000 by now. What is the big appeal of the app then? It’s practically an alternative to conventional social apps such as Facebook and Instagram that focuses on the segment of American population that uses medical and recreational marijuana and is passionate about it. It’s worth mentioning that the 275,000 current users that the company mentions every time it gets a chance are “registered users”. This is a curious statistical figure when it comes to social networks but is not a measure of success of popularity. The metrics used to gauge those things are usually “daily active users” and “monthly active users” – figures that MSRT has not explicitly stated so far.

The company announced a deal with a certain Flowhub that dubs itself a “seed-to-sale” business. More than a few investors may have found it very weird that MSRT used an official press release to take potshots at the competition, specifically naming competitive seed-to-sale software solutions and accusing them of “regularly” crashing, especially considering the piece linked in the PR only mentions issues with one of the two named products.

In our previous articles we looked at the significant amounts of $0.10 shares that MSRT issued in both 2014 and 2015. Those include 400,000 shares in March, issued upon the conversion of $40,000 worth of debt. Another half a million $0.10 share issued to MSRT directors and another 2 million shares priced at a dime each were issued in a round of funding back in 2014. A further 1.5 million shares were issued at $0.50 in early 2015.

Even though MSRT has gone a good way down from its recent highs of close to $3 per share, the stock still commands a sizable market cap for a business that generated $9 thousand in annual 2014 revenues and issued a lot of cheap shares over the last 12 months.