Top cannabis site Leafly reaffirms forecast ahead of planned market debut

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– Leafly on Monday reiterated it was on track deliver on its financial targets for 2021, a sign that the top cannabis-focused website was bucking broader industry weakness ahead of its planned Nasdaq debut next month.

The company earlier in the day got approval from the U.S. securities regulator for its registration statement, clearing the path for it to go public after a vote by shareholders of merger partner Merida Merger Corp I.

Merida, a special-purpose acquisition company, said its shareholders would meet on Jan. 14 to vote on the deal that was agreed in August.

The merger, among the largest by a cannabis-related services provider, is expected to hand Leafly over $161 million in proceeds for expansion into newly legalized markets like New Jersey.

Leafly Chief Executive Officer Yoko Miyashita said the company was not dependent on any one jurisdiction to meet its targets, although the opening of new markets should increase sales in the coming months.

The cannabis information provider and retail portal expects sales in California to rise 15% this year, despite wider industry struggles due to the dominance of illegal cannabis markets.

“North America’s legal cannabis industry continues to be the continent’s fastest-growing industry in 2021, and it shows no signs of slowing down in 2022,” Miyashita said in a letter to shareholders.

The company last month reported a 21% jump in third-quarter revenue.

(Reporting by Ruhi Soni in Bengaluru; Editing by Aditya Soni)

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