Aug 6 (Reuters) – Top cannabis-focused website Leafly is in talks to merge with blank-check company Merida Merger Corp I in a deal that would value the combined company at more than $530 million, three people familiar with the matter told Reuters.
The blank-check firm is owned by Merida Capital Holdings, one of the biggest backers of Leafly, whose site visits have seen a meteoric rise thanks to easing regulations in the United States and rising weed use.
A deal could be announced as soon as next week, the source said, cautioning that talks could still fall apart.
Following the merger, Merida will take at least one seat on the combined company’s board, while Leafly’s team will continue to be led by Chief Executive Yoko Miyashita, the sources said, declining to be named as talks were still confidential.
Leafly and Merida did not immediately respond to a comment.
The company plans use the proceeds from the deal partly to invest more into its east coast business, the sources said.
Founded in 2010, Leafly was owned by cannabis-focused private equity group Privateer Holdings between 2012 and 2019.
The company offers consumers ways to find weed stores to buy the cannabis strains they want, runs a pickup and delivery service and posts reviews on different cannabis products. [Read More @ Reuters]
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