The deal still requires approval and is expected to be completed by May
MassRoots is one of the leading cannabis technology platforms in the industry. It is about to get a lot bigger if it is able to consummate an acquisition of COWA Science Corporation, a company that specializes in supply-chain solutions. MassRoots has entered into a definitive agreement to acquire the company, and the deal is expected to be finalized by May 15.
The acquisition is reportedly worth around $5.78 million and would be conducted through a common-stock trade. COWA would need to achieve annual revenue milestones of $2.57 million and $7.5 million for the deal to be considered and would also have to comply with standard closing conditions. If the deal isn’t reached by May 15, MassRoots can back out with no questions asked.
COWA offers a range of products and services used by cultivators, distributors and other ancillary companies. According to a press release, “During the 2018 fiscal year, COWA generated revenues of approximately $1.5 million (unaudited) from approximately 50 cannabis and hemp-focused clients. MassRoots anticipates that the acquisition will enable both business segments to expand their client-bases by offering customers a complete suite of cannabis-centric products and services.”
Some of those products and services include advertising, growing supplements and nutrients, consumer packaging and product and process development.
COWA CEO Christopher Alameddin added in the press release, “COWA is thrilled to be joining the MassRoots family. I believe that our expansive service offerings and strategic industry relationships will provide transformative synergies to both MassRoots and its shareholders.”
MassRoots is traded on the over-the-counter OTCMKTS exchange and its price has seen improvements over the past five days. It was trading at $0.059 on February 5, climbing to $0.071 at 10 AM today. It currently sits at $0.068.