Online marijuana platform Leafly Holdings said it secured $30 million in new funding in relation to its pending merger with special purpose acquisition company (SPAC) Merida Capital Holdings.
At the same time, Merida said a special meeting to vote on the proposed merger – originally scheduled for Jan. 14 – will be delayed “to a later date.”
The funding takes the form of an unsecured convertible note purchase by investment management firm Cohanzick Management and its affiliates, according to a news release issued late Tuesday by Seattle-based Leafly.
Investors stopped writing checks in 2019 because many cannabis companies were spending vast amounts of money to gain market share but failed to show a profit. That caused their stock prices to crater.
Three large SPAC initial public offerings have fueled the upswing in the cannabis industry in the first three months of this year, according to Viridian:
Weedmaps, a cannabis review site and software company, announced Thursday that it has agreed to go public through a merger with a special purpose acquisition company (SPAC).
The deal values the company at $1.5 billion and would be a rare example of a cannabis-related company listing on a U.S. stock exchange, which legally can't list cannabis companies.