Leafly Going Public: Cannabis Giant to Merge with SPAC

Leafly to Become Publicly Traded via SPAC Merger

Leafly is set to become a publicly listed company through a merger agreement with Merida Merger Corp. I. This strategic move aims to facilitate the company’s entry into the public market.

Deal Details and Financial Projections

The transaction is estimated to be worth approximately $532 million. It is projected to yield proceeds of up to $161.5 million for the combined entity.

This valuation incorporates Leafly’s recent fundraising efforts, which secured $31.5 million in capital from investors, notably including Merida Capital Holdings.

Listing and Ownership Structure

Upon completion of the merger, the newly formed company will be listed on the Nasdaq exchange under the ticker symbol LFLY. Merida will assume the Leafly name following the transaction.

Current Leafly shareholders are anticipated to retain approximately 72% ownership in the merged organization.

The completion of this deal is currently expected during the fourth quarter of 2021.

Leafly’s Growth and Market Position

Established in 2010, Leafly has evolved into a prominent marketplace and informational hub within the cannabis industry.

The platform provides a comprehensive content library for consumers, featuring detailed information on cannabis strains, retail locations, and industry news.

Leafly also offers a subscription-based platform for retailers, currently serving 7,800 brands and 4,600 retail subscribers.

Revenue is forecasted to reach $43 million in 2021 and increase to $65 million in 2022, according to recent reports.

Recent Developments and Strategic Shifts

While achieving success, Leafly navigated challenges in 2020, including workforce reductions and changes in leadership.

Yoko Miyashita assumed the role of CEO in August 2020, focusing on enhancing Leafly’s online shopping experience.

A partnership with Jane in February 2021 was established to further improve the company’s e-commerce capabilities.

Strategic Timing and Future Outlook

By pursuing a public listing through a SPAC, Leafly is indicating its readiness for a period of accelerated growth.

This timing coincides with potential changes in U.S. federal cannabis regulations, which may lead to reduced restrictions on the industry.