Weed review and education website Leafly is set to be available for public trading this year, signaling the plant’s continued transition toward the corporate mainstream.
Through a merger with shell corporation Merida Merger Corp. I (Nasdaq: MCMJ), Leafly Holdings Inc. says it will list on the Nasdaq under the ticker symbol LFLY.
According to a statement, both parties have unanimously approved the deal, which is expected to close by the fourth quarter of 2021.
The new entity will take the Leafly name and the company estimates a fully diluted enterprise value of around US$385 million and an equity valuation of US$532 million.
Merida Capital Holdings is a private equity firm and a large backer of Leafly. Under the deal, existing Leafly shareholders will roll 100 per cent of their existing stake in the company, and are expected to to own around 72 per cent of the new firm on a pro forma basis.
The parties expect the transaction to generate proceeds of US$161.5 million, subject to redemptions by holders of Merida stock. That amount includes Leafly’s recent capital raise for US$31.5 million led by investors including Merida, Delta Emerald Ventures, SOJE Capital and existing Leafly shareholders.
The website says it provides a subscription-based platform for more than 7,800 brands and 4,600 paying retail subscribers. Around 55 per cent of North American retail licensees are subscribed to its marketplace and advertising services, according to Leafly.
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“As a non-plant touching platform with leading brand recognition, a user-friendly experience, and an established position in core growth markets, Leafly is well positioned to capitalize on accelerating legalization trends and e-commerce adoption across North America,” reads the statement.
“With this transaction, we are looking forward to entering the next phase of our company’s journey – creating more personalized consumer experiences, driving more value to our retail partners, amplifying brands on our platform, and further scaling our presence in local markets as legalization continues,” says CEO Yoko Miyashita.
Cannabis regulation-agnostic delivery platform Weedmaps, WM Technology Inc (Nasdaq: MAPS), has seen its stock price increase by almost 40 per cent since it went public last December. The company now has a market capitalization of US$2.24 billion.
nick@mugglehead.com
