Leafly to Begin Trading Shares on NASDAQ
Leafly, one of the leading online resources for cannabis information, is set to become a publicly traded company and will begin selling its shares on the NASDAQ stock exchange. The company’s listing is scheduled for the fourth quarter of 2021.
Leafly’s Market Capitalization to Reach New Heights
Leafly has signed a merger agreement with Merida Merger Corp. The combined entity will operate under the Leafly name and will launch public trading of its shares. Current Leafly investors will retain 72% ownership, while 28% of the shares will be sold on NASDAQ for $161.5 million. This deal values Leafly at a market capitalization of $532 million, with the company’s enterprise value estimated at $385 million.
The Leafly Marketplace
Leafly CEO Yoko Miyashita announced that the company plans to expand its business as cannabis legalization accelerates in the United States. Leafly has launched a marketplace platform where customers can reserve cannabinoid products and cannabis accessories from American retailers. The platform features 55% of all licensed cannabis sellers in the U.S. (about 4,600 vendors), offering more than 7,800 different products. Users place approximately 4.5 million orders annually, totaling $460 million in sales.
Leafly Remains Unprofitable Despite Popularity
Leafly is the world’s most visited cannabis website, with 125 million unique visitors annually and 10 million monthly. Its popularity is driven by two main factors:
- The company has created the largest database of cannabis strains (over 5,000 varieties).
- The portal leads competitors in content volume, with more than 11,000 articles.
Revenue and Financial Outlook
Leafly charges commercial businesses for access to its marketplace and earns additional revenue from advertising. Last year, the company generated $36 million in revenue. In 2021, revenue is expected to grow by 19% to $43 million. However, due to high operating costs, Leafly is not yet profitable. Economists estimate the company will continue to incur losses of at least $15 million annually through 2023, with profitability projected to begin in 2024.