Merida Merger I in an S-4 filing today included a preliminary prospectus outlining its proposed merger with cannabis company Leafly.
Announced last month, the transaction values the combined company at an implied, fully diluted enterprise value of approximately $385 million and equity value of approximately $532 million, subject to any redemptions by Merida stockholders.
Existing Leafly shareholders will roll 100% of their existing stake in Leafly and, upon closing, they are expected to own approximately 72% of the combined company on a pro forma basis, assuming the company receives 100% of the proceeds currently held in trust.
The transaction is expected to generate proceeds of up to $161.5 million, subject to any redemptions. This includes Leafly’s recent $31.5 million capital raise led by cannabis-focused investors, including Merida Capital Holdings, Delta Emerald Ventures, SOJE Capital, and Leafly’s existing shareholder base.
If approved, upon completion Leafly stock is expected to list on the Nasdaq under LFLY. Read more.