Topic: How To Invest

Q: Hi, Pat. I’m looking for your recommendation on Leafly Holdings. I read they are now working with Uber in Toronto. Do you see any gains ahead? Thanks.

Article Excerpt

A: Leafly Holdings Inc., $0.70, symbol LFLY on Nasdaq (Shares outstanding: 40.0 million; Market cap: $27.8 million;, is a Seattle-based online cannabis marketplace. Leafly was founded in 2010 and is considered the world’s largest cannabis marketplace, with more than 125 million annual visitors. The company’s revenue primarily comes from a monthly subscription fee paid by cannabis retailers for listing on the platform and accessing its e-commerce tools. More than 7,800 brands from 5,637 cannabis retail subscribers use its services. Leafly finished the third quarter of 2022 with 8.2 million monthly active users (consumers). The platform also makes money from advertising. On August 9, 2021, Leafly announced that it would combine with Merida Merger Corp. I, a special purpose acquisition company (SPAC). SPACs are a specialized kind of IPO (Initial Public Offering, or new stock issue). One key difference is that SPACs, also referred to as “blank-check companies,” raise money from investors without providing a detailed business plan. The SPAC goes through an IPO-like…