On the internet cannabis discovery marketplace Leafly Holdings Inc. and Merida Merger Corp. I (NASDAQ:MCMJ), a particular reason acquisition business sponsored by Merida Funds Holdings, introduced Wednesday that they have entered into a $30 million convertible note order arrangement with new traders led by Cohanzick Administration LLC and affiliates, an financial investment administration firm.
The supplemental funding is expected to near quickly prior to wrapping up the proposed business mixture involving Leafly and Merida. The funding will assist Leafly’s latest multi-calendar year enterprise plan.
“This agreement supplies more funding certainty as Leafly enters the next period of our journey as a public enterprise,” Yoko Miyashita, CEO of Leafly claimed. “Owning accelerated our expansion trajectory in 2021, we search forward to utilizing this sizeable new cash to extend our leading cannabis marketplace and more greatly enhance our know-how platform, delivering far more personalised shopper browsing activities and driving far more benefit to our retail associates.”
Transaction Specifics
The funding will be in the kind of unsecured convertible senior notes due in 2025, bearing an 8{3e92bdb61ecc35f2999ee2a63f1e687c788772421b16b0136989bbb6b4e89b73} per annum interest rate, paid in cash semi-every year in arrears on Jul. 31 and Jan. 31 of each 12 months.
The notes will be convertible at the possibility of the holders at any time ahead of maturity at $12.5 per share.
In addition, Merida and Leafly entered into a next amendment to the merger agreement indicating that the proceeds obtained from the take note invest in agreement will be counted toward Merida conference the least dollars ailment demanded by the settlement.
Merger Facts
Leafly announced that it is going public by way of a business enterprise blend with Merida in August. Underneath the offer, Merida agreed to acquire Leafly’s identify, with its frequent stock listing on NASDAQ beneath the ticker symbol ‘LFLY.’
The merged entity is predicted to have fully a diluted business price of all-around $385 million and an fairness worth of close to $532 million, topic to any redemptions by Merida stockholders. In addition, the transaction, authorized by boards of each Leafly and Merida, is anticipated to produce proceeds of up to $161.5 million.
Merida observed that a exclusive assembly to vote on the proposed company combination, initially scheduled for Jan. 14, will be adjourned to a later day to be announced in buy to give Merida stockholders sufficient time to evaluate the phrases of the financing and selected additional details.
MCMJ Value Action
Merida’s shares traded 18.89{3e92bdb61ecc35f2999ee2a63f1e687c788772421b16b0136989bbb6b4e89b73} greater at $9.98 for every share at the time of writing on Wednesday early morning.
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