WM Technology to Acquire Weedmaps

TL;DR

MAPS is buying Weedmaps to combine operations, closing Q4 2024.

AI Summary

WM Technology, Inc. (ticker: MAPS) announced on July 22, 2024, that it has entered into a definitive agreement to acquire all outstanding shares of common stock of Weedmaps. The acquisition is expected to be completed in the fourth quarter of 2024, subject to customary closing conditions. This move aims to integrate Weedmaps' operations more closely with WM Technology.

Why It Matters

This acquisition signifies a major consolidation within the cannabis tech industry, potentially impacting market competition and the user experience for cannabis consumers.

Risk Assessment

Risk Level: medium — Acquisitions carry inherent risks, including integration challenges, regulatory hurdles, and potential failure to achieve expected synergies.

Key Players & Entities

• WM TECHNOLOGY, INC. (company) — Registrant
• Weedmaps (company) — Target of acquisition
• July 22, 2024 (date) — Date of agreement
• fourth quarter of 2024 (date) — Expected closing period
• Silver Spike Acquisition Corp. (company) — Former company name

FAQ

Key Financial Figures

• $0.0001 — which registered Class A Common Stock, $0.0001 par value per share MAPS The Nasdaq Gl
• $11.50 — A Common Stock at an exercise price of $11.50 per share MAPSW The Nasdaq Global Sel
• $1,500,000 — and would pay a civil money penalty of $1,500,000. This agreement is subject to mutual ag

Filing Documents

• maps-20240722.htm (8-K) — 29KB
• 0001779474-24-000033.txt ( ) — 188KB
• maps-20240722.xsd (EX-101.SCH) — 2KB
• maps-20240722_def.xml (EX-101.DEF) — 15KB
• maps-20240722_lab.xml (EX-101.LAB) — 26KB
• maps-20240722_pre.xml (EX-101.PRE) — 16KB
• maps-20240722_htm.xml (XML) — 4KB

01. Other Events

Item 8.01. Other Events Settlement in Principle As previously disclosed, in the second quarter of 2022, the Board received an internal complaint regarding the calculation, definition and reporting of the Company's monthly active users ("MAUs") metric. In response, the Board formed a special committee of independent directors to conduct an internal investigation with the assistance of outside counsel. As a result of the findings of that internal investigation, the Company provided certain additional information regarding the growth and nature of the Company's previously-reported MAUs in the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2022 filed with the SEC on August 9, 2022. This investigation found no impact on the Company's financial results under accounting principles generally accepted in the United States of America ("GAAP") or the reporting or disclosure of any currently disclosed non-GAAP financial metric. As also previously reported, in the third quarter of 2022, the Company determined not to report MAUs going forward. In August 2022, the Board determined to voluntarily report the internal complaint and subsequent internal investigation to the SEC, following which the SEC's Division of Enforcement commenced an investigation. The Company has been fully cooperating with that investigation. On July 22, 2024, the Company reached an agreement in principle with the SEC staff to resolve the SEC staff's investigation with respect to the Company. Under the terms of the settlement, the Company would consent, without admitting or denying the SEC's findings, to the entry of an administrative cease-and-desist order finding violations of Sections 17(a)(2) and (3) of the Securities Act of 1933, as amended, Sections 13(a) and 14(a) of the Securities Exchange Act of 1934, as amended, and Rules 12b-20, 13a-1, 13a-11, 13a-13, and 14a-9 thereunder, and would pay a civil money penalty of $1,500,000. This agreement is subject to mutual agreement on

View Full Filing

View this 8-K filing on SEC EDGAR