Tim Draper of Draper Fisher Jurvetson fame may be too chicken to invest in WeedMaps (think Yelp for pot), but that isn’t stopping other companies from sniffing around the startup, looking to score.
In fact, a company called LC LUXURIES LIMITED, or rather its most recently established subsidiary, US Cannabis, is very close to buying WeedMaps. According to this press release, the Nevada corporation has entered into formal negotiations with the startup to acquire the domain name “weedmaps.com” as well as the current operating website.
Best part of the announcement is the statement from James Pakulis, President of US Cannabis:
“Having an equity interest in Weedmaps.com is only natural. We are truly looking forward to consummating a transaction.”
WeedMaps.com is an online community where medical marijuana patients connect with other patients in their geographic region to discuss and review local cannabis co-operatives, dispensaries, medical doctors and delivery services.
At present, WeedMaps is home to over 43,000 medical marijuana patients and receives more than 25% of its revenue outside of California, mostly in emerging medical marijuana states like Colorado and Nevada. The company says it’s not just a Yelp clone anymore, having built a business model based on the concept charging dispensaries for the ability to post their menu of items for sale on the site.
Menu items are posted via an AJAX interface called the WeedMenu, which is specifically designed to categorize the products commonly found at cannabis dispensaries, eg edibles, concentrates, indica, etc.
Currently, WeedMaps is tracking 15,703 items across 630 dispensaries in real-time via the WeedMenu. The WeedMenu is searchable, filterable, and shows the products prices (if entered by the dispensary). Businesses pay anywhere between $195 – $395 per month to post their menus online with WeedMaps, depending on region population. WeedMaps says over 75% of the listings update their WeedMenus at least once per week.
LC Luxuries Limited, US Cannabis’ publicly listed parent company, was in the business of selling beauty products such as makeup and perfume on the Web through its website makeup.com. As a result of the sale of certain domain names, the company says it is currently developing a new website and seeking new business opportunities.
At this time, the terms and conditions of the acquisition of WeedMaps are still being negotiated and no terms or conditions of the acquisition have been agreed upon between the parties.
Maybe they should light one up in tandem and see if they can become closer buds.