Leafly is turning to a SPAC with Merida Merger Corp. I to go public. The deal, valued at about $532 million and expected to generate proceeds of up to $161.5 million, includes Leafly’s recent capital raise of $31.5 million from investors, including Merida Capital Holdings.
The company is expected to list on Nasdaq under the ticker symbol of LFLY as Merida will adopt the Leafly name. Existing Leafly shareholders will own about 72% of the merged company. The deal is expected to close in the fourth quarter of 2021.
Leafly was founded in 2010 and has grown into a leading marketplace and resource. The company offers a deep library of content for consumers, including detailed information about strains, retailers and current events. For retailers, Leafly offers a subscription-based platform that 7,800 brands and 4,600 retail subscribers use. According to a report, the company is expected to see 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 focused on Leafly, leaning heavily into building a better online shopping experience. In February 2021, the company partnered with Jane to improve Leafly’s e-commerce tools.
By going public through a SPAC, Leafly is signaling it’s entering a growth phase just in time for the U.S. government to loosen cannabis restrictions.