IRVINE, Calif. – The co-founders of WM Technology, Inc., better known as Weedmaps, have approached the company’s board with a proposal to take the cannabis-focused technology firm private.
The offer, which was made public today, outlines a bid to purchase all outstanding shares of the company at a price of $1.70 per share in cash.
This offer represents a significant premium over recent trading metrics. It is set at 39% above Weedmaps’ closing share price on December 17, 2024, 52% above the implied Enterprise Value of the same date, and 65% above the volume-weighted average price (VWAP) over the past year.
Weedmaps has become a notable platform within the cannabis industry, providing software and other technology services. The privatization move by the co-founders, Mr. Francis and Mr. Hartfield, could signal a strategic shift for the company as it navigates the evolving landscape of the cannabis market.
The transaction proposed by the co-founders is non-binding and subject to various conditions, including due diligence, financing, and the negotiation of definitive agreements.
The board of directors has yet to respond to the offer, and there is no certainty that the proposed transaction will be completed as outlined or at all.
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