Cannabis review site Weedmaps goes public at a valuation of $ 1,5 billion

by Team Inc.

2020-12-12-Cannabis review site Weedmaps goes public at $1,5 billion valuation

The parent company of Weedmaps will go public at a valuation of $ 1,5 billion, the company said Thursday. The IPO follows positive developments and the expected growth for US marijuana companies in the coming years.

Demand for cannabis continues to rise as many people work from home, many states legalize the use of cannabis, and the U.S. House of Representatives last week voted on a bill to decriminalize cannabis at the federal level.

WM Holdings

Founded in 2008, WM Holdings operates the Weedmaps platform and WM Business, a subscription software used by cannabis retailers and brands. The company said its revenues have grown at a compound annual rate of 40% over the past five years and are on track to hit $ 160 million in revenues and $ 35 million in EBITDA this year.

Following the deal, which is expected to bring in revenues of up to $ 575 million, the combined company will be led by Chris Beals, Chief Executive Officer of WM Holding and will remain listed on the Nasdaq, the company said. Scott Gordon, CEO of Silver Spike SPAC, will join the board of the combined company.

Silver Spike is a Special Purpose Acquisition Company (SPAC), which raises money through an initial public offering (IPO) with the aim of buying a private company. The acquired company will then go public as a result of the merger and is an alternative to the traditional IPO process. SPACs have emerged as an increasingly popular route into the stock market for private companies as they can be completed faster than an IPO and there is more certainty about the funds a company will raise. Silver Spike raised $ 250 million during an August 2019 IPO on Nasdaq with an emphasis on buying a cannabis business.

Read more on Nasdaq.com (Source, And)

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