Facebook of weed aims to get listed on Nasdaq

MassRoots, the so-called Facebook of pot, has reapplied for a listing on Nasdaq in hopes of raising fresh cash.

If successful, MassRoots will be the exchange’s first initial public offering by a US company in the cannabis industry.

Denver-based MassRoots has been trading over-the-counter as a “penny stock” since April 2015 and initially applied for a Nasdaq listing last September.

But it was turned down for lack of an underwriter, a spokesman said. MassRoots has since retained Charden Capital Markets to underwrite the sale of up to $6.5 million in shares and warrants.

High on the IPO’s potential, investors sent MassRoots’ stock up 22.7 percent Monday to close at $1.54 per share.

Nasdaq wouldn’t address MassRoots’ acceptance chances, saying it doesn’t comment on companies in the listing process.

MassRoots bills itself as “a social network for the cannabis community” – a network that has grown to 775,000 users in just three years.

Much of the growth reflects the reluctance of stoners to discuss cannabis consumption on mainstream social media, where family, colleagues and authorities might not look so kindly on toke talk.

Cannabis remains illegal under federal law, although 23 states allow some degree of medical marijuana use, and four of those allow legal adult use. MassRoots predicted 14 states will pass adult-use laws and two states will pass medical-use laws within five years.

MassRoots reported revenue for last year of $213,963 —mostly from advertising by dispensaries, which are barred from Google, Facebook and Twitter.