WM will use 80%+ of the capital raised in its SPAC + PIPE to cash out existing shareholders (the co-founders, purposefully). $450MM straight out to shareholders and another $35MM of transactions, leaving $100MM on the balance sheet.
Quite misleading to frame their capitalization as having $550MM+ available for growth capital.
I stand corrected, thank you for bringing this to my attention.
The article is updated to reflect that Weedmaps has over $100 million on their balance sheet.
With Weedmaps being a public company and their balance sheet now being a currency they could dilute existing shareholders by 10% to buy one of their biggest competitors.
Dutchie is Saas, not a marketplace. Leafly and WeedMaps have educational content, strain information, news articles, and dispensary finders. Dutchie only has dispensary finders with ordering.
I do like your article, but I feel like you are comparing two apples to a banana.
As a user of all 3 sites to shop, this comparison makes very little sense to me.
Dutchie is SaaS right now, however, dutchie.com is already one of the most popular marketplaces.
It will only be a matter of time until Dutchie has all of the above IMHO & when they do they will win as the marketplace that has access to the most number of stores inventory will be the biggest winner.
The distinction between a marketplace and a SaaS platform is important. Consumers may discover a dispensary through Weedmaps or Leafly, but the retailer still owns much of the actual customer experience: accurate inventory, online ordering, loyalty, checkout speed, and repeat communication.
That is why retail platforms such as https://indicaonline.com/ also belong in this conversation. The winning model may not be a single marketplace, but a combination of consumer discovery and reliable dispensary infrastructure that allows retailers to maintain a direct relationship with their customers.
WM will use 80%+ of the capital raised in its SPAC + PIPE to cash out existing shareholders (the co-founders, purposefully). $450MM straight out to shareholders and another $35MM of transactions, leaving $100MM on the balance sheet.
Quite misleading to frame their capitalization as having $550MM+ available for growth capital.
Can you link to the company confirming this?
In the article I read from MJ Biz, the $500 million on their balance sheet will primarily be used for M&A.
https://www.sec.gov/Archives/edgar/data/0001779474/000095010320024045/dp142700_ex9902.htm
See slide 37
I stand corrected, thank you for bringing this to my attention.
The article is updated to reflect that Weedmaps has over $100 million on their balance sheet.
With Weedmaps being a public company and their balance sheet now being a currency they could dilute existing shareholders by 10% to buy one of their biggest competitors.
Dutchie is Saas, not a marketplace. Leafly and WeedMaps have educational content, strain information, news articles, and dispensary finders. Dutchie only has dispensary finders with ordering.
I do like your article, but I feel like you are comparing two apples to a banana.
As a user of all 3 sites to shop, this comparison makes very little sense to me.
Dutchie is SaaS right now, however, dutchie.com is already one of the most popular marketplaces.
It will only be a matter of time until Dutchie has all of the above IMHO & when they do they will win as the marketplace that has access to the most number of stores inventory will be the biggest winner.
The distinction between a marketplace and a SaaS platform is important. Consumers may discover a dispensary through Weedmaps or Leafly, but the retailer still owns much of the actual customer experience: accurate inventory, online ordering, loyalty, checkout speed, and repeat communication.
That is why retail platforms such as https://indicaonline.com/ also belong in this conversation. The winning model may not be a single marketplace, but a combination of consumer discovery and reliable dispensary infrastructure that allows retailers to maintain a direct relationship with their customers.