Weedmaps Founders Propose to Take Company Private

LOS ANGELES- Co-founders Doug Francis and Justin Hartfield of WM Technology, Inc., the parent company of Weedmaps, have proposed to take the company private. They offered $1.70 per share in cash for the approximately 68% of shares they do not currently own, valuing the company at about $100 million.

This proposal represents a 39% premium over the closing share price of $1.22 on December 17, 2024. Following the announcement, WM Technology’s stock (NASDAQ: MAPS) rose nearly 25%, reaching approximately $1.42 per share.

The co-founders cited significant challenges in the cannabis industry, including declining licensed cannabis markets since the company’s public listing in 2021 and increased competition from large multi-state operators and traditional technology providers like Google Maps. They believe that returning to private ownership would provide shareholders with immediate liquidity and better position the company to navigate these industry headwinds.

The proposal is subject to approval by a special committee of independent directors, the company’s board, and a majority of shareholders. Jefferies LLC is acting as the financial advisor for the proposed transaction.

WM Technology went public in June 2021 through a merger with Silver Spike Acquisition Corp., a special purpose acquisition company (SPAC).