On Thursday, WM Holding Co., a technology platform that deals with cannabis and its consumers has said that it will merge with Silver Spike, a blank-check firm. The merged company will become a public listed one, listing on the NASDAQ Stock Market.
As the news unveiled Silver Spike shares rose by 31% and were at $13.74.
WMH in Irvine California operates a website and app called Weedmaps. Consumers can find cannabis business through them. It also has a business called WM Business which is a software-as-a-service subscription available for cannabis retailers and brands.
Weedmaps has over 10 million active users per month. It also has 18,000 business listings in states that have a legal cannabis market as well as in the District of Columbia and in Puerto Rico.
The new company will gain up to $575 million of gross proceeds. This includes a cash reserve of $250 million held in trust by Silver Spike as well as a PIPE – Private Investment in Public Equity totaling $325 million at $10 a share. After closing the equity value is estimated to be$1.5 billion.
Chris Beals, chief executive of WM Holdings said in a statement: “With this merger, we will be able to continue scaling the Weedmaps marketplace in the U.S. and internationally in the service of our users while expanding the functionality of our WM Business SaaS offerings in service of our clients,”
Beals will be CEO of the combined company while Scott Gordon, Silver Spike’s chairman and CEO will join the combined group’s board.
Source The Street INVESTING