Cannabis-focused social media platform MassRoots could be evicted from its Denver offices unless the company pays nearly $40,000 in back rent. According to The Cannabist, the embattled publicly traded company owes $39,742 to its landlord and hasn’t paid its rent since August.
The marijuana social media firm hasn’t paid rent since August for its second-floor office at Market Center, 1624 Market St., according to a notice taped on the locked, glass doors.
If MassRoots doesn’t pay $39,742 by Thursday, the company will be evicted from the office that has served as its headquarters since 2015, according to the Dec. 18 notice from Urban Renaissance Group LLC, the property manager for building owner Market Center Investors LLC. MassRoots leased the 3,552-square-foot office in March 2015, regulatory filings show. In January 2016, it expanded into a neighboring suite, adding 1,508 square feet, according to the company’s most recent annual filing, made March 31, 2017, with the U.S. Securities and Exchange Commission.
Reinstated Massroots 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.
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 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.
“Over the past two months, Scott Kveton has been unable to raise funds to pay for the lease that I was able to fund during our tenures,” Dietrich said. “We’re very excited for the future of MassRoots and our expansion into blockchain technology.”
As for the September to mid-October period during which he was still at the helm, Dietrich said MassRoots officials at that time were trying to renegotiate the terms of the lease with the property owner.
MassRoots does have funds available to pay the amount owed, Dietrich said, adding that if a payment is not made, it will be a “strategic business decision” to lower expenses.
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.