WeedMaps is about to become publicly listed with a USD $1.5 billion valuation following a merger with Silver Spike (SSPK).
WeedMaps is one of the most prominent cannabis websites for both users and vendors alike, and yet, WeedMaps doesn't touch the cannabis plant at all, making them a highly successful ancillary cannabis company.
Now, Weedmaps is about to become publicly-listed, with a valuation of USD $1.5 billion thanks to a merger with blank-check firm Silver Spike (SSPK) that will see WeedMaps listed on the Nasdaq Stock Market.
Founded in 2008, WeedMaps initially sought to provide individuals with information about their nearest medical marijuana dispensaries. The company has seen rapidly rising revenues since its founding, with revenue climbing from $20,000 per month in 2009 to $400,000 per month in 2010.
The merger with Silver Spike is predicted to bring Weedmaps up to $575 million in proceeds.
"When you look at what we're offering (to investors), there's really not too much else like it," said the Chief Executive of WM Holdings, the holding company for WeedMaps, Chris Beals.
Beals went on to say that WMH is expected to generate $160 million in revenue for this year, continuing its 12-year streak of profitability.
Silver Spike's executive Scott Gordon, raised $250 million in August last year through an IPO on Nasdaq, stating that "there was no better opportunity and no more dynamic company and story for us to consider a transaction with than with WMH."
The merger comes amid a series of wins for the cannabis industry, with five states in the U.S. voting to legalize some form of cannabis in November, followed shortly by the U.N.'s announcement that cannabis would be removed from its list of Schedule IV substances, where the plant previously sat alongside heroin.
Now, the U.S. House of Representatives seeks to pass the MORE (Marijuana Opportunity, Reinvestment & Expungement) Act , in addition to a new medical marijuana research bill.
These announcements have sent cannabis stocks climbing and may make 2020 one of the most important years in history for cannabis legalization.
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