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WM Holding Co., the parent of Weedmaps, an Irvine-based online provider of the locations of cannabis dispensaries, plans to go public through a reverse merger that may value the company around $1.5 billion.
Weedmaps will go public through Silver Spike Acquisition Corp, a special purpose acquisition company known as a SPAC. It’s become a popular method to avoid traditional initial public offerings that typically face more regulatory and investor scrutiny.
Weedmaps expects gross proceeds of up to $575 million from the deal, which includes $325 million in a private placement in public entity transaction, also known as PIPE.
The company is on track to generate $160 million in sales this year and has been profitable since its founding 12 years ago, WMH Chief Executive Chris Beals told Reuters today.