WM Holding Company, the Leading Technology Platform to the Cannabis Industry, to List on Nasdaq Through Merger With Silver Spike Acquisition Corp.

  • WM Holding Company, LLC (“WMH” or “WM Holding”) operates Weedmaps, the leading online listings marketplace for cannabis consumers, and WM Business, a comprehensive software-as-a-service (“SaaS”) subscription offering for cannabis retailers and brands
  • The merger advances WM Holding’s mission to power a transparent and inclusive global cannabis economy and capitalize on its position as the largest technology provider in the sector
  • The estimated post transaction equity value of the combined Company is approximately $1.5 billion and provides up to $575 million of gross proceeds through the approximately $250 million of cash held-in-trust by Silver Spike Acquisition Corp. and a fully-committed common stock PIPE of $325 million
  • As a result of outsized demand, the PIPE offering was significantly oversubscribed and upsized, including investment from funds managed by AFV Partners, the Federated Hermes Kaufmann Funds and Senvest Management LLC along with a $35 million commitment from Silver Spike Capital
  • WM Holding’s executive officers will retain 100% of their equity in the combined company, which will have approximately $100 million of cash on hand after closing

CALIFORNIA: WM Holding Company, LLC and Silver Spike Acquisition Corp., a publicly-traded special purpose acquisition company, announced today a definitive agreement for a business combination that would result in WMH becoming a public company. The combined company will be led by Chris Beals, Chief Executive Officer of WMH, and is expected to remain listed on the Nasdaq Stock Market.

Company Overview

Founded in 2008, WMH operates Weedmaps, the leading online listings marketplace for cannabis consumers and businesses, and WM Business, the most comprehensive SaaS subscription offering sold to cannabis retailers and brands. The Company solely provides software and other technology solutions and is non-plant touching. WMH has grown revenue at a CAGR of 40% over the last five years and is on track to deliver $160 million in revenue and $35 million in EBITDA for 2020.

The cannabis market in the U.S. is expected to double over the next five years as the majority of U.S. adults support having legal access to cannabis. Despite these expectations of growth, cannabis users in the U.S. are still a small sub-segment of the population today, and retail density is still low across the majority of states with regulated legal cannabis markets. The regulations related to these markets are often complex and disparate across states as well as cities and counties within regulated states. Cannabis itself is a highly complex and non-shelf stable consumer product. These dynamics present a challenging and sometimes uncertain environment for consumers seeking legal cannabis products and for businesses selling to cannabis users while operating in a compliant fashion.

WMH addresses these challenges with its Weedmaps marketplace and WM Business SaaS subscription offering. Over the past 12 years, Weedmaps has grown to become the premier destination for cannabis consumers, with over 10 million monthly active users and over 18,000 business listings across every U.S. state, the District of Columbia and Puerto Rico with a legal cannabis market. Clients of the Company maintain listings in 9 international countries outside of the U.S. Through the Weedmaps website and mobile apps, WMH provides consumers with information regarding cannabis retailers and brands, as well as the availability of cannabis products, facilitating product discovery and online order-ahead for pickup or delivery by participating retailers.

The Company’s cloud-based WM Business SaaS subscription offering provides cannabis retailers with an end-to-end operating system to access valuable users, grow sales and scale their businesses at a compelling return-on-spend. This “business-in-a-box” functionality ranges from integrations supporting product menus that have online order-ahead, delivery order fulfillment software, data & analytics, a point-of-sale solution and a wholesale marketplace. WMH has been investing in and optimizing its WM Business software solution to also facilitate compliance for businesses amidst the complex, disparate and constantly evolving regulations governing the cannabis industry. Underlying this compliance functionality is a proprietary and sophisticated rules engine that is a core underpinning of the WM Business SaaS platform.

Chris Beals, WMH’s Chief Executive Officer, will continue to lead the Company along with the existing management team. Silver Spike’s CEO and Chairman, Scott Gordon, will join the merged company’s Board of Directors upon completion of the transaction.

FSD Pharma To Begin Trading On The NASDAQ Capital Market Under Symbol ‘HUGE’ January 9, 2020

FSD Pharma

CANADA: FSD Pharma Inc. today announced that its Class B Subordinate Voting Shares (the “Shares”) have been approved for listing on the NASDAQ Capital Market under the symbol ‘HUGE’. Trading on the NASDAQ is expected to commence at market open on Thursday, January 9, 2020.

The Company’s Shares will continue to be listed on the Canadian Securities Exchange under the symbol ‘HUGE’.

“As we announce this much anticipated and coveted milestone, I want to congratulate the FSD Pharma team, our stakeholders, and, most importantly, our shareholders. I also want to extend my gratitude to the members of the Board of Directors of FSD Pharma, and especially to the founders of the Company, for their vision and for giving me an opportunity to lead the FSD Pharma team to achieve this strategic advantage. It is exciting to realize that once we begin trading on NASDAQ, we will be included in a select group of 12 Canadian-domiciled cannabis companies trading on either the NYSE or NASDAQ, and the first company in the history of the Canadian Securities Exchange to be dual-listed on a major U.S. exchange,” stated Raza Bokhari, MD, Executive Co-Chairman and CEO.

 

Tips For Investing In Marijuana Stocks

The hype for the marijuana is not dying soon. A lot of People are seeking to invest in the marijuana industry. The companies in the marijuana industry that you can invest stocks in are the marijuana growers companies in large scale using greenhouses and other indoors growing methods, the companies that provide ancillary products and services such as the greenhouse lighting, hydroponics or packing. Another company you can invest in stocks are the biotech companies that are geared towards cannabis. The cannabis industry is growing and investing in its shares is worthwhile. The following are ways you can invest in marijuana stocks:

1. Know the Company You Want To Invest In

As you can see, there are three types of marijuana companies you can invest in. Your financial goals and personal interests in marijuana should guide you in picking the right company to invest the stocks in. Research about the company you want to invest in. There is a lot of information online. Make an informed decision before you invest.

2. Know the Possible Risks

Investing is stocks can be highly profitable. However, the chances of risks are very high too. Investing in marijuana stocks has even higher risks. The possible risks that can greatly influence the marijuana stocks negatively are the political and legal issues, imbalances in the demand and supply of marijuana and the over the counter stocks.

piggybank3. The Amount You Want To Invest

How much money are you willing to invest in marijuana? Stocks are volatile and unpredictable. So do not invest too much of your money. Invest only in what you are willing to lose. If you are not an aggressive investor, do not invest too much of money on marijuana stocks. If you want to learn how to invest in highly risky stocks such as the marijuana stocks, join the forums such as the Investors Hangout. There is so much to learn in these stock investors forums.

4. Watch Out for the Changes in the Industry

Before you invest in this industry, learn and watch out for the market trends. This is a fairly new industry and the dynamics keeps on changing every now and then. You need to consider and predict what could happen in the near future before you invest in the marijuana stocks. You need to keep watch on the industry very closely.

5. Know the Different Types of Marijuana Products

Marijuana is used for two major purposes, the Medical and Recreational marijuana. One of the major reasons for the legalization and the continued legalization of marijuana is the medical properties. There are a few countries that have legalized it for recreational use. More than 30 countries in the USA have legalized the use of marijuana for medical use. This information should guide you towards the direction you want to take in investing in the marijuana products.

The marijuana stocks are volatile and unpredictable, just like any other type of stocks. However, they show promise of a good future. The industry is a bit young and fast growing. Start investing now in this industry.

MTech Acquisition Corp. And MJ Freeway Announce Merger Agreement

NEW YORK: MTech Acquisition Corp., the first US-listed Special Purpose Acquisition Company focused on acquiring a business ancillary to the cannabis industry, and MJ Freeway, a leading seed-to-sale technology provider and developer of the cannabis industry’s first enterprise resource planning platform, announced today they have entered into a definitive merger agreement. Following the consummation of the transaction, MTech and MJ Freeway will become subsidiaries of a newly-formed holding company to be listed on The Nasdaq Stock Market. Following the closing of the transaction, if there are no redemptions by MTech shareholders in connection with the MTech shareholder vote to approve the transaction, it is currently anticipated that the combined entity will be debt free and have over $60 million of balance sheet cash to take advantage of strategic growth opportunities.

MJ Freeway is a seed-to-sale technology provider, with more than 30% of the global cannabis technology market based on management’s estimates. MJ Freeway has tracked more than $10 billion in sales for its clients in Australia, Europe, South America, New Zealand, Africa, Canada, and the United States in 29 states and the District of Columbia. MJ Freeway’s software, MJ Platform®, includes compliance tracking of cannabis from seed-to-sale, as well as enterprise scale business management tools across the entire supply chain. In addition, its Leaf Data Systems® software solution enables governments to track cannabis plants from seed-to-sale to help ensure patient, public and product safety.

“We built MJ Freeway to be the technology infrastructure for the cannabis industry,” said Jessica Billingsley, Co-Founder & CEO of MJ Freeway. “With access to public capital markets and additional balance sheet strength as a result of this transaction, MJ Freeway will accelerate its growth and broaden its product offering as we strive to meet the ever-expanding demands of a highly complex and heavily regulated industry.”

Current MJ Freeway investor and Senior Strategic Advisor to the Board, Roger McNamee, added, “Cannabis companies that want to be leaders are adopting MJ Platform because I believe it is the only product with the technical foundation to support multi-line and multi-location operations. MJ Freeway prepares customers to manage high growth and complexity as the industry transitions from local to global scale. MJ Freeway’s merger with MTech will enable a smart growth strategy to capitalize on the industry’s continuing growth.”

Scott Sozio, Chief Executive Officer of MTech, commented, “We believe technology solutions that empower operators to efficiently and compliantly run their business, with tools that track the full vertical from cultivation to consumer, are critical to the industry’s long-term success. We believe MJ Freeway provides the most robust seed-to-sale software technology available today, positioning the company for enormous growth as the legalization of cannabis expands throughout the country and the world. We are excited for MTech to be able to invest in MJ Freeway at what we believe to be a very attractive valuation.”

“This merger will prove valuable over the long-term. Not only will it allow us to grow our current lines of business, it will accelerate our dominant market share in the cannabis SaaS space and also allow the company to make strategic acquisitions and expand its reach into related industries,” noted Emery Huang, Senior Partner of Batu Capital, a MJ Freeway investor, and a current board member of MJ Freeway.

Tilray Launches Initial Public Offering

CANADA: Tilray, a vertically-integrated and federally-licensed cannabis cultivator, processor and distributor, announced that it has launched an initial public offering of its Class 2 common stock pursuant to a registration statement on Form S-1 previously filed with the United States Securities and Exchange Commission. Tilray has applied to list its common stock on the Nasdaq Global Select Market under the ticker symbol “TLRY”.

 

Agreement represents major milestone recognizing medical cannabis as a conventional medicine for patients in need

Tilray is offering 9,000,000 shares of Class 2 common stock at an initial price to the public between US$14.00 and US$16.00 per share (approximately CAD$18.40 to CAD$21.00 per share1). Tilray intends to grant the underwriters a 30-day over-allotment option to purchase up to 1,350,000 additional shares.

In order to qualify the offering of securities in Canada and to ensure that purchasers in Canada are not subject to restrictions on resale, Tilray has also filed a preliminary prospectus for a proposed IPO in Canada with the securities regulatory authorities in each province of Canada other than the Province of Quebec. Tilray does not intend to list on any stock exchange in Canada.

Cowen and BMO Capital Markets are acting jointly as book-runners for the proposed IPO. Cowen is acting as the sole book-running manager for the IPO in the United States, and BMO Capital Markets is acting as the sole book-running manager for the IPO in Canada. Eight Capital is acting as lead manager for the IPO in Canada. In the United States, Roth Capital Partners is acting as lead manager and Northland Capital Markets is acting as a co-manager for the IPO.

The offering will be made only by means of a prospectus. Copies of the U.S. preliminary prospectus may be obtained from the SEC’s website or from Cowen by contacting Cowen c/o Broadridge Financial Services, 1155 Long Island Avenue, Edgewood, NY, 11717, Attn: Prospectus Department. Phone: (631) 274-2806. Copies of the Canadian preliminary prospectus may be obtained from www.sedar.com or from BMO Capital Markets by contacting BMO Capital Markets, Brampton Distribution Centre c/o The Data Group of Companies, 9195 Torbram Road, Brampton, Ontario, L6S 6H2 or by telephone at (905) 791-3151 Ext 4312 or by email at torbramwarehouse@datagroup.ca.

A registration statement on Form S-1 relating to these securities has been filed with the SEC but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

1Based approximately on the Bank of Canada daily exchange rate on July 5, 2018 of C$1.3129 = US$1.00

Tilray Files Application To IPO On Nasdaq

Company has also filed a Canadian Preliminary Prospectus for Proposed IPO, in order to qualify the offering of securities in Canada and to ensure purchasers in Canada are not subject to resale restrictions 

CANADA: Tilray, a vertically-integrated and federally-licensed cannabis cultivator, processor and distributor, has announced the filing of a registration statement with the U.S. Securities and Exchange Commission (the “SEC”) for a proposed initial public offering (“IPO”) of shares of its Class 2 common stock in the United States. Tilray intends to list its Class 2 common stock on the Nasdaq Global Select Market under the ticker symbol “TLRY.”

The number of shares to be offered and the price range for the offering have not yet been determined. In order to qualify the offering of securities in Canada and to ensure that purchasers in Canada are not subject to restrictions on resale, Tilray has also filed a preliminary prospectus for a proposed IPO in Canada with the securities regulatory authorities in each province of Canada other than the Province of Quebec. Tilray does not intend to list on any stock exchange in Canada.

Cowen and BMO Capital Markets will jointly act as book-runners for the proposed IPO. Cowen will act as the sole book-running manager for the IPO in the United States, and BMO Capital Markets will act as the sole book-running manager for the IPO in Canada. Eight Capital will act as a lead manager for the IPO in Canada. Roth Capital Partners will act as a lead manager and Northland Capital Markets will act as a co-manager for the IPO in the United States.

Cronos Group to Begin Trading On Nasdaq Stock Exchange

CANADA: Cronos Group Inc.has announced that trading of its common shares in the United States will be elevated from the Nasdaq International Designation program to the Nasdaq Global Market (“Nasdaq”).

Cronos Group expects that its common shares will begin trading on Nasdaq on February 27, 2018 under the trading ticker symbol “CRON.” Cronos Group will retain its listing on the TSX Venture Exchange (“TSX-V”) under the symbol “MJN.”

“This up listing to NASDAQ is a major corporate milestone and reflects the significant progress we have made in strengthening our corporate governance and expanding our global footprint,” said Mike Gorenstein, CEO of Cronos Group. “We believe this will increase long term shareholder value by improving awareness, liquidity, and appeal to institutional investors.”

About Cronos Group

Cronos Group is a globally diversified and vertically integrated cannabis company with a presence across four continents. The Company operates two wholly-owned Canadian Licensed Producers regulated under Health Canada’s Access to Cannabis for Medical Purposes Regulations: Peace Naturals Project Inc. (Ontario), which was the first non-incumbent medical cannabis license granted by Health Canada, and Original BC Ltd. (British Columbia), which is based in the Okanagan Valley. The Company has multiple international production and distribution platforms including: Cronos Israel and Cronos Australia. Through an exclusive distribution agreement, Cronos Group has access to over 12,000 pharmacies in Germany. The Company is rapidly expanding its global footprint as it focuses on building an international iconic brand portfolio and developing disruptive intellectual property. Cronos Group is committed to building industry leading companies that transform the perception of cannabis and responsibly elevate the consumer experience.

 

 

Don’t Fight The Tape: Cannabis Stocks Subject To Broad Market Swings

DISTRICT OF COLUMBIA:  Unless you’ve been hiding under a financial rock, you’ve seen just how volatile major stock indexes have been for the past week. It’s been a wild ride as the S&P 500, which represents the largest companies in America, has slid as much as 5% and risen nearly as much—in the same day! The Dow Jones Industrial Average had swings of over 500 points a day for four straight days, something not seen since the depths of the financial crisis in 2008-2009.

Investors may be lulled into thinking that stocks they own or study in the cannabis space are insulated from what’s happening in the broader market. But that’s simply not true, and violates one of the oldest maxims in investing: Don’t fight the tape.

The “tape” here refers to what is going on in the broader indexes. If, for example, the S&P 500 or the NASDAQ is down 2% on the day, the odds of a cannabis stock rising in price that particular day is very, very low. Unless the company has some specific news or catalyst affecting it that has just come to light, one can expect that the stock will be down along with the broader “tape.” The expression comes from Wall Street days of yore when stock prices literally came out in a long roll of ticker tape, tick-tick-ticking throughout the day. Prices of stocks tended to move in concert then, and 100 years later it’s the same story.

 

GW Pharmaceuticals Closes U.S. Public Offering; Cannabis-Based Medicines Progress

NORTH CAROLINA:  Yesterday, Salisbury, UK-based GW Pharmaceuticals plc announced the closing of its public offering of 1.7 million American Depositary Shares on the NASDAQ Global Market. When taken together with the full exercise of options for another 255,000 ADSs by the underwriters at $86.83/ADS, the offering totaled $169.8 million.

Although some of the ADRs were sold by current shareholders, the company still grossed $126.3 million before discounts and expenses.

The funds come at a time when its flagship product,Sativex®, garnered a FDA Fast Track designation–after its approval in several other countries as early as 2005–and its Epidiolex® cannabidiol (CBD) formulation received orphan drug designation for severe, intractable epilepsy syndromes in infants and young children.

Coincident with the conclusion of GW’s stock offering yesterday, the North Carolina State House of Representatives is advancing a bill that would explicitly permit patients and their families to obtain a CBD-enriched oil (10% or more) with no more than 0.3% THC, the primary psychoactive constituent.