Mj Freeway is merging with MTech Acquisition to become a publically traded company on the Nasdaq stock exchange. This comes after a successful $10 million fundraiser in late 2018, per mjbizdaily.com. MJ Freeway is a seed-to-sale software provider that currently hosts WA’s cannabis traceability software LeafData Systems. MTech and MJ Freeway will be known as the Pubco holding company once the merger is complete.
The inventors of seed-to-sale software and government traceability software providers have clients in 22 other states, the District of Columbia, Australia, Canada, Europe, South America, and Switzerland. MJ Freeway has had its share of troubles over the years. On top of multiple cybersecurity breaches that put their client data at risk, they’ve struggled to uphold cannabis traceability requirements in WA. Jessica Billingsley, CEO, and co-founder of MJ Freeway has been open about the companies struggles over the last couple of years.
“We invested more on security in a quarter than most of our competitors earn in a quarter,” says Billingsley confidently. “The system that was attacked our legacy system and our generation 2 platform -our flagship product- is built on an architecture that makes it more resilient. We have invested heavily in additional security, an outside security firm and layers of security within AWS,” Billingsley told Forbes.
MTech Aquisition is the “first US-listed Special Purpose Acquisition Company focused on acquiring a business ancillary to the cannabis industry,” New Cannabis Ventures reports. As the legal cannabis experiment moves into the meta of recreational drug regulation, MTech believes MJ Freeway is poised for tremendous global growth. MJ Freeway will become a subsidiary company of Pubco and Pubco is a subsidiary of MTech.
The newly formed Pubco holding company expects to be debt-free with more than $60 million of free money on the books when the deal finalizes in early 2019.
Will MTech-MJ Freeway Merger Affect Washington Cannabis Traceability?
It will be interesting to see if the merger affects Leaf Data Systems. The LCB and MJ Freeway were still discussing how to properly collaborate to “deliver a fully functional traceability system” last Nov. A letter from the WA Attorney General’s office was distributed to the Cannabis Alliance in Nov. 2018 laid out seven conditions for MJ Freeway to follow to best help fix Leaf Data Systems. A major condition includes the hiring of a third-party software verification company that reviews the software code and reports back to the LCB and MJ Freeway. The LCB wants Billingsley to be directly involved with report card feedback and implementation.