Hashish market Leafly closes SPAC merger deal and can go public on Monday

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(Leafly Picture)

Almost six months after asserting plans to go public by way of a SPAC merger, Seattle-based on-line hashish market Leafly has sealed the deal and can start buying and selling on the Nasdaq on Monday.

Leafly is merging with Merida Merger Corp., a particular function acquisition firm sponsored by Merida Capital Holdings. Merida has adopted the Leafly identify, based on a Friday information launch, and the widespread inventory will commerce beneath the ticker image LFLY.

In August, the proposed mixed firm was listed at an enterprise valuation of $385 million.

Based in 2010, Leafly’s on-line market lets clients store and choose hashish merchandise from licensed retailers. The startup additionally serves as an academic useful resource, and its platform has greater than 125 million annual guests.

Leafly CEO Yoko Miyashita stated in a press release that turning into a public firm was an vital milestone for firm.

“Backed by substantial funding, super developments in hashish legalization and e-commerce tailwinds, we’re relentlessly centered on investing in our expertise, expertise, and content material to execute our progress technique and create worth for all stakeholders,” Miyashita stated.

Leafly CEO Yoko Miyashita.

A former Getty Photos government, Miyashita was beforehand the corporate’s basic counsel when she joined in 2019, and took over as CEO in August 2020. Leafly spun out of Seattle marijuana funding agency Privateer Holdings in 2019.

The SPAC transfer comes at a time of elevated turmoil available in the market.

The mergers had turn into a preferred different to the normal course of for preliminary public choices, paving a sooner path to going public. However within the new yr, shares are tumbling and offers are being deserted.

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“The SPAC bubble is bursting,” Chris Senyek, a senior fairness analysis analyst at Wolfe Analysis, stated in a CNBC report this week. “SPAC shares are extraordinarily unstable as a result of their speculative nature.”

Leafly, which employed round 160 individuals as of final summer time, weathered some cuts in January 2020, letting go of 18% of its employees, or 54 positions, which then-CEO Tim Leslie attributed to “market realities of the expertise and hashish sectors.” It lower 91 extra staff two months later, citing the uncertainties brought on by the coronavirus pandemic.

Leafly raised $23 million in new funding and $38 million so far as of June 2021 because the hashish market noticed a rise in gross sales as extra states legalize pot and dispensaries had been declared important companies throughout the COVID-19 pandemic.

Leafly cited “important acceleration” in its year-over-year income progress and gross margin, and a 40% improve in complete ending retail accounts within the third quarter of 2021, based on the information launch.

Leafly’s income primarily comes from a month-to-month subscription payment paid by hashish retailers to be listed on the platform and to entry e-commerce instruments. The corporate stated greater than 7,800 manufacturers use its providers. It additionally makes cash from promoting.