Denver-based marijuana tech and social media company MassRoots is planning to acquire another business. The company announced Wednesday a letter of intent to acquire Empire Services, a metal recycling company, for $14 million.
Empire Services currently operates 10 metal recycling facilities in Virginia and North Carolina. The company was founded in 2002 and currently has about 65 employees.
Upon closing the acquisition, MassRoots expects to generate “significant revenue and positive cash flow from operations,” CEO Isaac Dietrich said in a statement. MassRoots also plans to settle its outstanding preferred shares and debts with the cash flow.
In addition, Danny Meeks, the sole shareholder in Empire, will join MassRoots’ board of directors as executive chairman.
MassRoots has acquired a range of businesses since 2016, including COWA Science, WeedPass, Odava and Whaxy in 2016, according to Crunchbase. Most recently, MassRoots announced plans in December to acquire Herbfluence's technology platform.
In July 2013, MassRoots launched a mobile app connecting like-minded people and allowing them to share cannabis-related content while staying outside the realm of Facebook and Twitter. Currently, the company only operates on a web-based browser but earlier this year Dietrich hinted at re-launching the app.
