Cannabis-focussed eCommerce platform Leafly is planning to go public by merging with blank-check firm Merida Merger Corp I in a deal valued at more than $530 million.
The firm’s move to go public comes at a time when consumers’ usage of cannabis-related products is continuing to climb with the easing of regulations and decriminalization of marijuana use. The company has seen visitors to its site increase to more than 220 million in just the past year, up from 12 percent in 2019. As a result, Leafly is today the most visited cannabis-related site in the country.
While the merger details are still being finalized, if the deal goes through, Merida will have at least one seat on Leafly’s board, while Leafly’s CEO Yoko Miyashita will continue to lead the company.
According to Reuters, Leafly plans to use the proceeds from the sale to expand on its east coast business.
The company’s platform enables consumers to find stores to buy various strains of cannabis, post reviews on different products, buy cannabis-related paraphernalia, and access its pickup and delivery service. In addition, Leafly also offers eCommerce and advertising services to cannabis dispensaries. Currently, more than half of all North American dispensaries reportedly use Leafly’s services.
Leafly’s competitor Weedmaps went public in December last year by striking a similar deal with a blank-check firm.