Popular cannabis website Leafly to go public through blank-check merger

Leading cannabis platform Leafly is reportedly in discussions to merge with blank check firm Merida Merger Corp. to go public, an agreement that would value the new combined entity at over USD 530 million.

The deal, if finalized, would be the latest in a nascent sector that has swept up in the blank-check mania. Leafly plans to list itself on the Nasdaq under the ticker 'LFLY’.

Merida will have at least one seat on the combined company's board of directors after the merger, while Leafly's team will continue to be managed by Chief Executive Yoko Miyashita.

An insider claimed the deal would be disclosed by next week but cautioned that things might still fall apart. The company intends to use the proceeds from the deal to expand its east coast operations.

For the record, cannabis-focused private equity firm Privateer Holdings had previously owned Leafly between 2012 to 2019. The firm helps customers identify weed retailers where they can buy the cannabis strains they choose, provides a pickup and delivery service, and posts reviews on various cannabis items.

Leafly's platform is used by more than half of all cannabis dispensaries in North America for e-commerce, marketing, and other services.

Prospects of federal legalization and pandemic-related lockdowns have propelled Leafly's site visits to more than 220 million last year, which is up by 12% from the previous year, making it the most viewed pot website worldwide.

In December, rival Weedmaps' parent firm had also signed a blank-check deal to go public on the Nasdaq. Californian pot manufacturer TPCO Holdings, which is backed by Jay-Z, and Parallel and led by Billionaire William "Beau" Wrigley Jr. have also struck similar deals to list their shares.

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https://www.nasdaq.com/articles/exclusive-top-cannabis-site-leafly-in-talks-to-go-public-via-blank-check-merger-sources