Cannabis technology company Leafly Holdings Inc. announced on Monday plans to go public via a reverse takeover with Merida Merger Corp. Once finalized Leafly will trade on the NASDAQ under the “LFLY” symbol.
The transaction values the combined company at a fully diluted enterprise value of about $385 million and equity value of approximately $532 million, subject to any redemptions by Merida stockholders, the companies said in a press release.
Leafly CEO Yoko Miyashita said the transaction moves the company into its “next phase … creating more personalized consumer experiences, driving more value to [its] retail partners, amplifying brands on [the] platform, and further scaling [its] presence in local markets as legalization continues.
“For the past decade, we have focused on building a unique, legally compliant marketplace with an equal emphasis on educating consumers and enabling them to reserve cannabis products from legal, reputable providers. … Our consumers recognize Leafly as one of the most trusted brands in cannabis, and we do not take that trust for granted. We are excited to partner with Merida’s deeply experienced team to create even more value for our consumers, partners and shareholders.”— Miyashita in a statement
Leafly said that about 55% of North American retail cannabis licensees are currently subscribed to its marketplace and advertising services and boasts an audience of 10 million monthly unique visitors.
The company says it expects projected revenue of approximately $43 million in 2021E and $65 million in 2022E, representing about 52% annual growth with gross margins of about 88% as it further penetrates current markets and capitalizes on its position in newly legalized states on the East Coast, such as Connecticut and New York.
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