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MassRoots Fall 2016 OutlookDENVER, Sept. 26, 2016 /PRNewswire/ -- MassRoots, Inc. (OTCQB: MSRT), one of the largest and fastest growing technology platforms for the cannabis industry, is pleased to release the following Chairman's Letter. MassRoots Shareholders, MassRoots recently reported in our second quarter financial results that we generated more revenue in a single quarter than all previous quarters combined. Partnered with sizeable reductions in operating expenditures made this summer, we expect that MassRoots will be cash-flow positive on a monthly basis by the end of 2016. Over 75% of sales are expected to come solely from the Colorado and California markets, while the November 2016 elections have the potential to open or expand markets in 8 additional states. Our two closest comparibles, Weedmaps and Leafly, are expected to generate more than $25 million and $15 million, respectively, in digital advertising revenue during 2016. Already with comparible userbases to both of these services, we believe our annual revenue run rate will grow to this range within the next 12 to 18 months. Product Pipeline User-Growth Expense Reductions 2016 Elections When a state passes a medical or recreational cannabis law, MassRoots is able to start registering users and businesses in that state with minimal marginal cost. Because we are not involved in the production or sale of cannabis, we do not have to build outgrow operations, open retail stores, or have a significant physical presence in the state in order to generate revenue. At the same time, MassRoots' financial model is not tied to the success of a particular location, brand or a particular ballot initiative – we believe we will have a significant percentage of all dispensaries and brands on our platform, making MassRoots a play on the industry as a whole. Sitting at the intersection of healthcare on the medicinal side and a vice industry on the recreational side, we believe the cannabis industry can continue to grow in any economic climate. According to ArcView Market Research and New Frontier Financial, the regulated industry is expected to grow from $5.7 billion in 2015 to $23.1 billion in 2020, an annual compound growth rate of 35%. Collaborations, Partnerships to Play Major Role in Fourth Quarter In May 2015, MassRoots invested in Flowhub's preferred seed round to provide capital for the initial development of the next generation of cannabis point-of-sale and compliance technology. Since launching in June 2016, Flowhub has facilitated more than 250,000 transactions across dozens of dispensaries in Colorado and Oregon, facilitating end-to-end regulatory compliance while streamlining their business operations. We believe Flowhub is at a critical inflection point, poised to scale from dozens of dispensary locations using its platform now to hundreds of locations by the end of the year. Within the next few months, we expect a significant percentage of all transactions occurring in the regulated cannabis industry will happen within the MassRoots/Flowhub ecosystem. We believe these collaborations and partnerships will expand the offerings and capabilities of the MassRoots platform and offer some insight into the direction we are taking the business. I know these past few months have been frustrating in the public market for our stock and as the Company's largest shareholder, I have used this opportunity to add to my position. Fundamentally, we believe that MassRoots is in a stronger position than ever while the 2016 elections have the potential to significantly accelerate the growth of the cannabis market. We look forward to applying the knowledge, experience, and relationships we've gained the past few years to shaping the development of the regulated cannabis industry. Looking forward to an exciting couple of months and reporting back to you on the continued growth and development of our Company. Regards, Forward-looking Statements
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/massroots-fall-2016-outlook-300334086.html SOURCE MassRoots, Inc. |