MassRoots acquires COWA Science, expands offerings at “every step of the cannabis supply chain”
Earlier this week, cannabis technology firm MassRoots Inc. (OTCMKTS:MSRT) came to an agreement with COWA Science Corporation, acquiring the “supply chain as service company” for a package worth nearly $5.7 million. The deal is revenue dependent, with COWA tasked to bring in $2.5 million and $7.5 million over the next few years.
According to a statement released on Tuesday, COWA brought in $1.5 million in revenue during the last fiscal year, with a clientele of nearly 50 companies in the cannabis sector.
MassRoots CEO Isaac Dietrich heaped praise on the team from COWA and suggested that they would have an immediate impact on company operations.
“We've been laser-focused on growing MassRoots' revenues, and we believe the acquisition of COWA, which generated north of $1.5 million in revenue last year, will be a significant driver of those efforts,” Dietrich told PotNetwork via email.
We are thrilled to welcome @CowaScience to the MassRoots family. “This acquisition will be immediately accretive and allow us to better diversify ourselves in the rapidly emerging cannabis industry” @Isaac_Dietrich @Adweek @itstheannmarie $MSRThttps://t.co/8xibPXvbVM
— MassRoots (@MassRoots) February 12, 2019
In his statement from earlier in the week, Dietrich noted that MassRoots had been following the successes of COWA for some time. A keen observer of the industry, Dietrich has been known to follow the progress of smaller companies as he plots MassRoots strategy for the future.
In past interviews with PotNetwork, he’s mentioned CannaRegs, Grownetics, and Flow Hub, to name a few.
“This deal expands our product offerings at every step of the cannabis supply chain — from cultivators to dispensaries to consumers,” continued Dietrich.
Though relatively unknown to the public-at-large, COWA has made a name for themselves within certain circles in the cannabis industry. The Colorado-based company does everything from consumer packaging to HVAC and more.
MassRoots continued to rebrand itself in a way this past year, with the company moving from its headquarters in Denver to new offices in Los Angeles. And while its new subscription-based model, which helps companies and consumers find a dispensary has not brought in as much revenue as anticipated, the company has seen a decline in net losses.
“The COWA acquisition is a central component of MassRoots' 2019 strategic growth plan and [I] look forward to updating our shareholders on our progress,” Dietrich told PotNetwork.