Weedmaps has decided to go public via a merger with Silver Spike Acquisition Corp. SSPK.
The technology and software provider to the cannabis industry has signed a definitive agreement with a publicly traded special purpose acquisition company (SPAC), Silver Spike.
WM Holding Company LLC, Weedmaps' parent company, will continue to operate its online marketplace for cannabis consumers. The merged company will stay listed on the Nasdaq stock market, and it will be run by WMH CEO Chris Beals.
Silver Spike CEO and Chairman Scott Gordon will join its Board of Directors once the transaction is finalized.
It is projected for the combined company to poses an equity value of roughly $1.5 billion, supposing the $10.00 per share PIPE price.
The deal is expected to yield up to $575 million in gross proceeds, counting $325 million via common stock PIPE at $10.00 per share. The PIPE accounts commitments from current investors.
The deal is dependent on the authorization of Silver Spike’s shareholders and other usual closing requirements. More details about the transaction will be revealed in a Form 8-K to be submitted by Silver Spike with the SEC.
Chris Beals, WMH’s CEO, said they are excited to merge with WMH and to become a public company. “We passionately believe in the power of cannabis and the importance of enabling safe, legal access to cannabis for consumers worldwide.”
“Our partnership with Silver Spike will provide us a stronger platform to advance our mission 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.”
Scott Gordon, CEO and Chairman of Silver Spike added that they trust WMH is one of the best investment opportunities in the cannabis industry.
Aside from Weedmaps, WMH is also known for its WM Business, which is an extensive software-as-a-service subscription offering for cannabis retailers and brands.
The company, founded 12 years ago, is expected to reach $160 million in revenue and $35 million in EBITDA for 2020.
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