WM Technology co-founders Douglas Francis and Justin Hartfield are backing out of a deal to purchase the company’s outstanding common stock.
WM Technology is the Irvine, California-based parent company of cannabis advertising platform Weedmaps.
Francis, the company’s CEO, and Hartfield will continue to evaluate the deal and could submit an alternative proposal, according to a Tuesday news release.
In December, Francis and Hartfield submitted a proposal to take WM Technology private.
The proposal was to acquire the stock for $1.70 per share, which would have represented:
- A 39% premium on the stock closing price on Dec. 17.
- A 52% premium on implied enterprise value as of Dec. 17.
- A 65% premium to the volume-weighted average price of the past year.
The company formed a special committee to consider the proposal.
“The Special Committee does not intend to comment on or disclose further developments regarding any potential transaction unless and until it deems future disclosure is appropriate or required,” according to the release.
MJBizDaily reached out seeking additional details, but the company has not responded.
At the time the deal to go private was announced, WM Technology said it was facing headwinds, with licensed end markets declining from the peak volumes achieved at the time the company merged with special purpose acquisition company Silver Spike Acquisition Corp.
WM Technologies, which trades as MAPS on the Nasdaq exchange, was fined $1.5 million by the U.S. Securities and Exchange Commission last September for allegedly misstating user metrics.
