MassRoots, Inc. (OTCQB:MSRT) has recently completed a $5-million equity offering.

Equity Offering

Isaac Dietrich, MassRoots Founder, CEO, and major shareholder, led the funding round. Other leading participants include Aphria, The Delavaco Group, among others.

With the completion of the equity offering, MassRoots now has the biggest cash on hand in its entire history.

Dietrich believes that the recently acquired funding is enough for the company to strengthen its balance sheet and to further its expansion efforts. With the heightened demand for cannabis in the US, MassRoots can take advantage of viable growth opportunities in the long run.

“Going forward, MassRoots will remain focused on introducing new monetization channels within our mobile applications while exploring strategic partnerships to expand our platform’s capabilities,” reiterated Dietrich.

Marijuana Industry Growth Growth

As more and more states in the US approve the use of marijuana for medical purposes, MassRoots is now more than ever well-positioned to grow its client base, becoming one of the leading industry players in the country.

The legal marijuana market in the US is expected to generate over $7 billion this year, growing 26% year-over-year. In 2015, regulated recreational cannabis sales alone have surged 184% year-over-year to $998 million from $351 million.

MassRoots-Aphria Partnership

Last month, MassRoots and Aphria have entered into an international agreement, a first in the cannabis industry.

With the strategic collaboration, MassRoots will help establish the Aphria brand in Canada through its innovative digital platforms. In exchange, the latter will entitle the former with a compensation for every successful patient referral.

To sum it up, the partnership complements the interests and long-term goals of both companies. Basically, Aphria aims to expand its client base— particularly in Canada— while MassRoots aims to expand its revenue stream.

Meanwhile, as part of the recently completed equity offering, Aphria has purchased half a million common MassRoots shares for $250,000.

On Thursday, MassRoots has closed at $0.85, down by 9.09%, while Aphria has ended at $2.83, up by 0.61%.