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Weedmaps: A Rare Combination Of Cannabis, Tech And SPAC

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Cornerstone Investments


  • Weedmaps announced that it will go public via a SPAC called Silver Spike Acquisition Corp in a $1.5B deal.
  • Weedmaps is a popular listing service for local cannabis shops and it is also building out a suite of software products for the cannabis sector.
  • We are bullish on the business overall but would await better entry points after the recent rally that pushed valuation to 17x 2021E revenue.

Welcome to our Discover Cannabis series, where we publish in-depth research to introduce new cannabis companies to our coverage.


A specialty purpose acquisition vehicle, or SPAC, called Silver Spike Acquisition Corporation (SSPK) is taking Weedmaps public in a transaction that values the online cannabis listings marketplace and software provider at $1.5B post-money. We think Weedmaps is very likely to attract strong interests from investors as it sits in the crossover between software and cannabis, two of the hottest sectors nowadays. The SPAC has risen ~140% since the deal was announced and we think investors could wait for better entry points given the lofty valuation.

Business Overview

Weedmaps began as a listings marketplace for cannabis dispensaries and has expanded into offering SaaS-based business software for cannabis companies. Together with Leafly (privately-held by Privateer, the original owner of Tilray (TLRY)) Weedmaps is one of the two most popular online portals for cannabis retailers and users. Based on online reviews, users generally prefer Leafly for cannabis-related education including product details, using, growing, etc. However, Weedmaps seems to be the better place for finding dispensaries and placing orders for cannabis products. Weedmaps was founded in 2008 and its primary business is its listings service that connects 10 million monthly active users with over 4,000 paying merchants through its portal. If you go to weedmaps.com the home page is filled with local dispensaries, then information on different strains, and lastly educational materials. Users can then order products from the dispensaries displayed. The listings business was created because cannabis users often had difficulty finding retailers in their local areas prior to the wave of state legalization that began in 2012 in Colorado and Washington. Similar to Google and Yelp, Weedmaps was one of the most popular ways for consumers to find cannabis retailers and vice versa. Weedmaps also provide useful guides and product information to educate and help users improve

This article was written by

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We are your best guide to cannabis investing. Read our 2021 Cannabis Sector Outlook here. We also provide in-depth industry analysis and coverage of 70+ cannabis stocks to help you get started.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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