Cannabis technology and software company Weedmaps Holding Company LLC on Wednesday began trading on the Nasdaq following a takeover of Silver Spike Acquisition Corp. In connection to the closing, Silver Spike changed its name to WM Technology and its ticker symbol was changed to “MAPS.”
Chris Beals, Weedmaps CEO, said the merger advances the company’s mission “to power a transparent and inclusive global cannabis economy, further solidify [its] position as a leading technology platform to the cannabis industry, and accelerate … growth.”
“We continue to benefit from strong, sustainable macro tailwinds as cannabis legalization advances throughout the U.S. and internationally. As a public company, we now have an even stronger platform to advocate for legalization, social equity and licensing in many jurisdictions, while providing cannabis businesses with the tools needed to succeed in a highly complex world of regulations. We are well positioned to continue scaling the Weedmaps marketplace in service of our users, while expanding the functionality of our WM Business SaaS offerings in service of our clients.”—Beals in a press release
The company indicated that from fiscal year 2014 through 2020, its revenue grew at a compound annual growth rate of 35% and its gross margin rate expanded from 92% to 95%. By the end of 2020, Weedmaps generated $162 million in revenues, a net income of $39 million, and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $43 million, it said.
The deal provides $579 million of gross proceeds primarily comprised of $254 million of cash from Silver Spike’s former trust account and $325 million of cash from a private investment in public equity, not including transaction fees.
Weedmaps announced its intent to take the company public last year, and, at that time, the cannabis tech firm was valued at $1.5 billion.
Exclusive offer from our sponsor:
Get daily news insights in your inbox. Subscribe