Leafly Holdings Delisted from Nasdaq Amid Financial Challenges

LOS ANGELES- Leafly Holdings, Inc, a online cannabis discovery platform, was delisted from the Nasdaq Stock Market on January 17, 2025, after failing to meet the exchange’s minimum net income requirement of $500,000 from continuing operations.

Consequently, the company’s common stock and warrants have transitioned to the OTC Pink Open Market, trading under the symbols LFLY and LFLYW, respectively.

This delisting reflects ongoing financial difficulties for the Seattle-based company. In the third quarter of 2024, Leafly reported revenues of $8.4 million, a decline from $10.6 million in the same period the previous year. The decrease was primarily attributed to a 20% reduction in retail accounts, which fell to 3,554, and decreased spending by customers due to budget constraints.

Despite a net loss of $1.1 million for the quarter, the company achieved a positive adjusted EBITDA of $0.4 million, marking its second consecutive quarter of positive adjusted EBITDA.

Leafly’s leadership has emphasized a commitment to financial stability and operational efficiency. CFO Suresh Krishnaswamy highlighted the company’s focus on addressing the maturity of convertible notes due in January 2025 and reducing cash burn. CEO Yoko Miyashita expressed optimism, stating, “With two consecutive quarters of positive adjusted EBITDA and a retail business that has largely reached a point of stabilization, we’re poised to capitalize on the growth opportunities ahead.”

The transition to over-the-counter trading presents new challenges for Leafly as it navigates the evolving cannabis industry landscape. The company continues to explore strategic opportunities to enhance its financial position and sustain operations in a competitive market.