Leafly is turning to a SPAC with Merida Merger Corp. I to head public. The deal, valued at about $532 million and expected to generate proceeds of as much as $161.5 million, involves Leafly’s latest capital raise of $31.5 million from investors, in conjunction with Merida Capital Holdings.
The company is expected to list on Nasdaq below the ticker symbol of LFLY as Merida will adopt the Leafly name. Existing Leafly shareholders will have about 72% of the merged company. The deal is expected to shut in the fourth quarter of 2021.
Leafly was based in 2010 and has grown into a leading marketplace and helpful resource. The company affords a deep library of state material for shoppers, in conjunction with detailed information about strains, retailers and unique occasions. For retailers, Leafly affords a subscription-based platform that 7,800 brands and 4,600 retail subscribers use. According to a account, the company is expected to seek revenue hit $43 million in 2021 and $65 million in 2022.
Despite the successes, Leafly experienced a turbulent 2020, with layoffs and leadership changes. Yoko Miyashita took over as the company’s CEO in August 2020 and has been centered on Leafly, leaning heavily into constructing a better online having a contemplate expertise. In February 2021, the company partnered with Jane to give a enhance to Leafly’s e-commerce tools.
By going public through a SPAC, Leafly is signaling it’s getting into a dispute phase factual in time for the U.S. authorities to loosen cannabis restrictions.