Reinstated Massroots (OTCMKTS:MSRT) CEO Isaac Dietrich had no time to enjoy his victory over ousted interim CEO Scott Kveton, as the once-and-current king returned to a kingdom in shambles this week. A report in The Cannabist finds the beset marijuana social media company facing eviction from their second-floor office space in Lower Downtown Denver. The company has not paid rent since August and had until Thursday to come up with $39,742 before the doors lock for good.
The building is owned by Market Center Investors LLC and runs through property management group Urban Renaissance Group LLC. According to the report in The Cannabist, an examination of regulatory filings show that the office, which is 3,552-square-feet, was first leased by Massroots in March 2015. A recent filing with the U.S. Securities and Exchange Commission includes information that the company expanded its office space in January 2016, adding on a neighboring suite consisting of 1,508 square feet.
As reported last week, Dietrich reclaimed the reigns of the company following a bout of internal drama that saw interim CEO Scott Kveton forced out along with three board members. The company also appointed three new members of the board, all with Dietrich’s backing.
“The board’s resigned; my slate of candidates have been appointed,” Dietrich said in a statement to The Cannabist about the incident. “It didn’t require going to an actual vote … everyone realized that I was going to win.”
The company had had a less than productive year, with beginning when Dietrich first handed control of the company over to Kveton. What seemed like a peaceful transfer of power, the kind that is typically seen in any Silicon Valley startup soon turned ugly. Accusations of drug abuse, sexual impropriety, and financial indiscretion with company funds came at Dietrich by Kveton. Kveton eventually filed a lawsuit against the Massroots founder, which was dropped upon his ouster last week.
Third-quarter financials released in November showed a company on the brink. With startlingly low revenues of around $11,500, Massroots claimed a quarterly loss of $7.5 million. An SEC filing indicated the need for at least $2.5 million in the fourth-quarter alone just to keep the company afloat.
As per the report in The Cannabist, Massroots offices currently sit dark, with letters piling up out front and FedEx notices taped to the door. Neither Dietrich nor David Myers, senior property manager for Urban Renaissance, were available for comment on the situation.
Everybody, it would seem, wants a piece of the king.