MassRoots founder takes aim at board
Once known as the “Facebook for pot,” company has sued former CEO Dietrich
The embattled former CEO of MassRoots Inc. launched a counteroffensive against the firm that is now suing him.
Isaac Dietrich, who founded the Denver firm and remains the marijuana social network and business technology company’s largest shareholder, on Monday initiated a process with the U.S. Securities and Exchange Commission requesting a special meeting and shareholder vote to elect a new board.
“I strongly believe that the board must be reconstituted to ensure that the interests of the shareholders are appropriately represented in the boardroom, and that the board takes the necessary steps to help the company’s shareholders realize maximum value for their investment,” Dietrich told The Denver Post.
Dietrich said he believes the company he founded in 2013 has potential to become a market leader in the cannabis industry — especially in what could be a colossal market in California. However, he doesn’t believe MassRoots could succeed under the guidance of the current trio of directors and interim CEO.
“History has proved that when a founder is removed from a company, typically it loses its vision and its drive going forward,” Dietrich said. “I truly feel that if we make this change, we’re going to be in a position to dominate California.”
In initiating the proxy fight, Dietrich is seeking to replace three board members: Terence Fitch, a former beverage industry executive who logged two decades at Coca Cola; Vincent “Tripp” Keber, the chief executive of cannabis-infused products company Dixie Elixirs; and Ean Seeb, co-founder of consulting firm Denver Relief LLC.
Keber and Seeb have held their seats since 2014. Fitch has served as a Mass Roots director since 2015.
Dietrich’s suggested replacement board includes himself as well as Charles R. Blum, a former CEO of Texas-based oil pipeline technology firm QS Energy; Nathan Shelton, a former president of auto equipment manufacturer K&N Engineering; and Cecil Kyte, an executive at copyright protection firm Rights corp.
Dietrich owns nearly 17.74 million shares of Mass Roots, or about 15.82 percent of the outstanding shares, according to Monday’s SEC filing.
The move is the latest chapter in Mass Roots’ recent saga, a corporate drama unfolding at a company once touted as the “Facebook for pot.”
Last week, the company filed a lawsuit in Denver District Court alleging Dietrich violated terms of his separation agreement, less than a month after Mass Roots officials announced that Dietrich resigned as part of a “planned transition” from executive to solely a member of the board. Taking the helm was Scott Kveton, founder of compliance software firm Odava, which Mass Roots acquired months earlier.
In the days after the Oct. 16 executive shift, Kveton was joined by Dietrich on a conference call with investors. The new CEO lauded his predecessor and the company’s promise of being a leading provider of consumer- and business-focused technologies, including a dispensary locator, social network, and point-of-sale and ordering systems.