Millions of dollars were poured in on cannabis-focused SPACs in the year, making them one of the more lucrative investments on Wall Street.
Several celebrity names have also jumped in on the action of investing massive sums of money in these shell companies. Moreover, the positive investor sentiment about federal marijuana reform has led to a record capital raise of $600 million in the first three months of 2021. Therefore, the industry is red hot, and it’s an ideal time to be investing in the sector.
Though it may appear that SPACs have just surfaced, these instruments have been around for several years. They first became popular before the 2008 financial crisis, but their popularity soon faded away until they came back in 2020.
Cannabis-focused SPACs, in particular, have been on a tear this year, and these are three of the most promising ones at this time.
Merida Merger Corp. I is a New York-based shell company that was founded in 2019. The company has agreed to take the online cannabis discovery marketplace Leafly public. The deal values both companies at roughly $532 million and generates up to $161.5 million. With its SPAC deal, Leafly is likely to enter its growth phase.
Leafly provides a subscription-based platform that provides access to hundreds of marijuana brands. Its e-commerce platform also offers detailed information regarding current events, retailers, and other elements. It expects its revenues to skyrocket to $43 million by the close of this year and $65 million by