Marijuana website Leafly, SPAC partner raise $30M; merger vote delayed

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.

“This supplemental financing, which will close immediately prior to the closing of the proposed business combination between Leafly and Merida, will help to ensure full funding of Leafly’s current multi-year business plan,” the release noted.

Merida’s shareholder meeting for a vote on the SPAC merger will be delayed to an as-yet-unannounced date “to give (the New York company’s) stockholders sufficient time to evaluate the terms of the note financing and certain additional information.”

Stay informed with MJBiz Newsletters

MJBiz’s family of newsletters gives cannabis professionals an edge in this rapidly changing industry.

Featured newsletters:
  • MJBiz Daily: Business news for cannabis leaders in your inbox each morning
  • MJBiz Cultivator: Insights for wholesale cannabis growers & vertically integrated businesses
  • MJBizCon Buzz: Behind-the-scenes buzz on everything MJBizCon
  • MJBiz Finance: Financial reports & funding strategies for entrepreneurs + investors
  • Hemp Industry Week: Roundup of news from hemp farming to CBD product manufacturing
  • And more!

 

The unsecured convertible senior notes carry an 8% annual interest rate and are due in 2025, among other conditions.

The Leafly-Merida merger, announced last August, is part of a wave of such deals in the cannabis industry.