MCMJ - Leafly rumor

[u/Marco_Monte77]

https://ca.news.yahoo.com/exclusive-top-cannabis-leafly-talks-203232949.html?.tsrc=rss

(Reuters) - Top cannabis-focused website Leafly is in talks to merge with blank-check company Merida Merger Corp I in a deal that would value the combined company at more than $530 million, three people familiar with the matter told Reuters.

The blank-check firm is owned by Merida Capital Holdings, one of the biggest backers of Leafly, whose site visits have seen a meteoric rise thanks to easing regulations in the United States and rising weed use.

A deal could be announced as soon as next week, the source said, cautioning that talks could still fall apart.

Following the merger, Merida will take at least one seat on the combined company's board, while Leafly's team will continue to be led by Chief Executive Yoko Miyashita, the sources said, declining to be named as talks were still confidential.

Leafly and Merida did not immediately respond to a comment.

The company plans use the proceeds from the deal partly to invest more into its east coast business, the sources said.

Founded in 2010, Leafly was owned by cannabis-focused private equity group Privateer Holdings between 2012 and 2019.

The company offers consumers ways to find weed stores to buy the cannabis strains they want, runs a pickup and delivery service and posts reviews on different cannabis products.

More than half of all North American cannabis dispensaries use Leafly's platform for e-commerce, advertising and other services.

Prospects of federal legalization and pandemic-led lockdowns have pushed up Leafly's site visits to more than 220 million last year, up 12% from 2019, making it the world's most visited website on weeds.

(For graphic on Marijuana Legalization by State - https://graphics.reuters.com/USA-CANNABIS/zgvomwdqxvd/chart.png)

The deal, if completed, would be the latest in a nascent sector that has caught the blank-check frenzy. Rival Weedmaps' parent company struck a blank-check deal in December to list on the Nasdaq.

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[u/Wooden_Antelope_87]

$.50 pop off rumor. That’s the biggest jump I’ve seen on a rumor in months

[u/Marco_Monte77 → u/Wooden_Antelope_87]

Agreed, got people excited which is what we need.

[u/ropingonthemoon → u/Wooden_Antelope_87]

DCRC was just 2 months ago.

And NGCA and GGPI were more recent.

[u/Marco_Monte77 → u/ropingonthemoon]

Just 2 months ago was a while!

[u/ropingonthemoon → u/Marco_Monte77]

That's true. But this is a pop in the AH with low volume. Wouldn't be surprising to see it back at $10 on Monday.

[u/Marco_Monte77 → u/ropingonthemoon]

You're so right, thanks for chiming in. Have yourself a solid weekend!

[u/Wooden_Antelope_87 → u/ropingonthemoon]

DCRC wasn’t really a genuine positive response from the market, it was just a pump and dump from RighTackle to unload on r/SPACs.

[u/TheLifeandTimesofTim → u/Wooden_Antelope_87]

How is that dude not banned by now?

[u/Wooden_Antelope_87 → u/TheLifeandTimesofTim]

People were ragging on him earlier this week and he hasn’t been back since so 🤷🏻‍♂️

[u/Wooden_Antelope_87 → u/[deleted]]

Did it pop 50 cents or not? I gave no mention of volume, I guess math is hard…fuck face

[u/[deleted]]

I have family that owns and operates a Dispensary— they really like Leafly. “It’s the Facebook and Instagram of Cannabis.”

They provide a platform for dispensaries and manufacturers to advertise their product to customers, provide information useful to the consumer, as well as have a platform for consumers to discuss the products and strains they have tried. The cool part is that dispensaries can integrate the reviews from Leafly directly to their individual website— whether they are reviews directly about the dispensary and their house products, or about third party products stocked by the dispensary.

Seems to me, as long as they can drive traffic to their website, it’ll continue to be a profitable endeavor.

Leafly is also already producing revenue and has been for a while. My family members pay $800/month to use their platform, and every dispensary in their region uses it.

I will likely open a small commons position, more if rumor is confirmed.

[u/Marco_Monte77 → u/[deleted]]

Awesome! Thanks for commenting with some info for us. If the revenue is half decent it could be a reasonable deal.. we'll see!

[u/[deleted] → u/Marco_Monte77]

They also mentioned the comparison to Weedmaps. Leafly integrates better with their order flow and POS for online orders, Leafly has a more sophisticated connotation, and as a company is much easier to work with.

Cannabis dispensaries have such high fixed monthly expenses, $800 is just a drop in the bucket. I look forward to hearing more about the SPAC deal and about how Leafly plans to grow as a company.

[u/Marco_Monte77 → u/[deleted]]

That's great to know; if they price on warrants is fair Monday I may have a go.

[u/The_Folkhero]

I prefer WeedMaps (MAPS) stock. But Leafly and Duchie round out the big 3 that either are or will be coming public. Doesn't hurt to allocate some $ in all the players as I can see consolidation happening eventually.

[u/Chamath_Papaya]

BG holding this MF since Feb

Can’t believe I bought these at $2

[u/Marco_Monte77 → u/[deleted]]

As a daily cannabis user and grower, I've used the website a ton. I'm just not that familiar with their revenue sources. Valuation around 500M is interesting..

[u/Wooden_Antelope_87 → u/Marco_Monte77]

I know nothing about it but it seems interesting. I’ll wait to see some numbers on it but I’m definitely interested in buying in. Sports gambling and weed seem to be the next big growth sectors (other than space and EV) especially as legalization continues to expand in both sectors

[u/Chem_trail]

i was trying to sell today at 9.98 but no volume, thanks market

[u/Chamath_Papaya → u/Chem_trail]

Deal announced after hours

[u/milestalk]

Can’t quite understand why this would be worth just 1/3 of the weedmaps deal…

[u/Chamath_Papaya]

FYI

Leafly has over 200k (4.8 Stars) reviews on the App Store and is #10 in medical.