Odava, Inc., a leading regulatory compliance platform for the cannabis industry, has been acquired by Massroots, Inc. The deal was for $1.75 million in an essentially all-stock deal with a low cash component.
The Terms of the Acquisition*
● Issuance of 3,250,000 shares of MassRoots’ common stock to Odava’s current shareholders, with registration rights requiring MassRoots file a Registration Statement covering the shares.
● Entry into employment agreements with the two founders of Odava, which will include a combined grant of 2,600,000 shares of MassRoots common stock, with 100,000 vesting immediately and 2,500,000 vesting monthly in equal installments over two years.
● $35,000 in cash paid to the founders of Odava at closing and bonuses totaling $50,000 cash will be awarded after one year of continuous employment.
*For more information on the Odava acquisition, please refer to the disclosure in MassRoots’ filings with the U.S. Securities
and Exchange Commission.
History of Odava, Inc.
Odava, Inc was founded in 2015 by Scott Kveton as Co-founder & CEO and Steven Osborn as Co-founder & CTO. Before Odava, Scott served as CEO of Portland push notifications company Urban Airship. Steven Osborn also founded Urban Airship with Scott.
The Odava team is made of technology industry veterans with more than 35 years of experience building Internet-scale infrastructures. They’ve raised over $65MM in capital to grow previous businesses and have extensive experience building market-leading technology that pioneers and defines new industries.
On June 13, 2016, Oregon Liquor Control Commission announced that the Odava suite of products was certified to work with their Cannabis Tracking System (CTS) Metrc. All licensees in Oregon are required to use this system to track their products. Certification enabled Odava to continue to expand the use of their suite of software across retailers, growers, processors, and wholesalers throughout the State.
Odava has two products, Odava Retail and Odava Grow.
Retail – Point-of-sale system that provides compliant tracking of sales for both recreational and medical marijuana laws in Oregon.
Grow – Inventory tracking system for growers that provides related compliance and bank & retail integration along with dashboard capabilities.
The Future of Odava
Currently, Odava has been serving dispensaries and cultivators in Oregon with end-to-end regulatory compliance and point-of-sale software. MassRoots plans to expand Odava’s availability to the California, Nevada, Massachusetts, Colorado, Maryland and Florida cannabis markets during 2017 and 2018 through its current users and relationships.
“This acquisition expands MassRoots’ offerings to dispensaries to include point-of-sale and regulatory compliance software, consolidating the most important operations for cannabis businesses into one central platform,” stated MassRoots CEO Mr. Isaac Dietrich. “We expect with MassRoots’ resources and relationships, we can grow the number of dispensaries utilizing Odava from dozens to hundreds by early next year. In the near future, we believe a significant percentage of all transactions occurring in the regulated cannabis industry will occur on our platform.”
With this acquisition, Massroots is looking to integrate Odava’s real-time pricing and availability capabilities with its cannabis user review site to create an end-to-end market offering to the cannabis industry.