On Tuesday, San Francisco-based MassRoots, Inc. (OTCQB: MSRT) and Leamington, Ontario-based Aphria Inc. (TSX-Venture: APH)(OTCQB: APHQF) inked one of the first cannabis-oriented partnerships between a U.S.-based company and a Canadian-based company with the goal of Aphria capturing a larger share of the Canadian market. The deal brings together two companies getting firm footing as leaders in their respective fields.
MassRoots is one the biggest and most active cannabis technology platforms in the world with in excess of 900,000 registered members consisting of consumers, businesses and marijuana activists. In many instances, MassRoots has been called the "Facebook of Cannabis" and similar terms because of its high user engagement and social media and advertising components.
Aphria is a leading producer, supplier and seller of pharmaceutical grade medical cannabis. The company has distinguished itself from peers in the public domain by becoming the first licensed producer to report positive cash flow from operations and the first to report positive earnings in consecutive quarters.
Per the new pact, MassRoots will create awareness of Aphria's products and services amongst its nearly one million-strong member base. Aphria has agreed to pay MassRoots for each referral coming from its platform.
MassRoots didn't just pick up a valuable partner and client, it gained a significant investor as well. On Monday, Aphria purchased 500,000 shares of MSRT for $250,000 as part of a registered offering by MassRoots. As part of the share purchase, Aphria also received warrants allowing the company to acquire another 500,000 shares of MSRT for an additional $450,000 within the next three years.
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