WM Technology Archives - Green Market Report

StaffDecember 6, 2022


The Daily Hit is a recap of cannabis business news for Dec. 6, 2022.


Weedmaps Lays Off 25% of Staff

The parent company of online cannabis marketing giant Weedmaps.com laid off a quarter of its staff, or 175 employees, as part of a cost-savings move, the company reported in a filing with the U.S. Securities and Exchange Commission this week. Read more here.

Doyen Elements Geoff Thompson to Plead Guilty

The cannabis fraud drama of Doyen Elements, or Covalent Collective, might finally be coming to an end. Geoff Thompson is scheduled to enter a plea of guilty at a hearing on Dec. 13, 2022. In December 2021, Thompson was charged in federal court in Chicago for ripping off investors to the tune of $950,000. Read more here.

Irwin Naturals Shores up Mental Health Clinics as Revenue Slumps

Irwin Naturals Inc. (CSE: IWIN) (OTC: IWINF) posted results that showed dipping revenue as the nutraceutical giant tries to expand its wellness clinic footprint. The company attributed the slowdown in business to “volume and startup costs related to Emergence by Irwin Naturals (ketamine clinics) and Irwin Naturals Cannabis (intellectual property licensing to the cannabis industry).” Read more here.

Pennsylvania’s Trulieve Calling Dr. Wiz Khalifa

Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF)  announced the official launch of Khalifa Kush premium medical marijuana products statewide in all Trulieve Branded Pennsylvania retail locations starting Monday, Dec. 12. Read more here.

Cannabis Industry Takes on Deadbeat Dealers

The cannabis industry is taking it upon itself to address deadbeat dealers within the industry – the people taking cannabis products to sell and then not paying for them. The most common payment term in retail is 30 days after the receipt of the product, however, that is being stretched to 60 and even 90 days in the cannabis industry. Read more here.


HEXO Corp.

HEXO Corp. (TSX: HEXO) (Nasdaq: HEXO), a producer of high-quality cannabis products, repaid the total outstanding principal amount of the company’s 8% unsecured convertible debentures issued Dec. 5, 2019, which matured on Dec. 5, 2022, in the amount of C$40.14 million together with all accrued and unpaid interest. Read more here.

Glass House Brands

Glass House Brands Inc. (NEO: GLAS.A.U) (NEO: GLAS.WT.U) (OTCQX: GLASF) (OTCQX: GHBWF) closed the third and final tranche of its previously announced non-brokered private placement of Series B Preferred Stock, face value $1,000 per share of GH Group Inc., a subsidiary of the company. The final closing of the offering included approximately $7.8 million of cash. Of this, about $7 million was fresh capital. Read more here.

Debra BorchardtAugust 8, 2022


Cantor Fitzgerald analyst Pablo Zuanic thinks Weedmaps or WM Technology Inc. (NASDAQ MAPS) could use a little more disclosure when it comes to talking about its statistics. While the analyst maintains his Overweight rating on the cannabis platform company, he also lowered his target price from $11.30 to $10.50. The stock was lately trading at $3.43 and the company reports its earnings on Tuesday after the market closes.

Zuanic sounds supportive of the company but seems to have tweaked his numbers and attributed that to a lack of visibility into the details backing those numbers. On the positive side, he notes that the company’s sales grew 6% sequentially at a time when most in the industry reported sales falling 3%). He also pointed out that Weedmaps is the “number one e-commerce marketplace and SaaS provider to the cannabis industry (close to 70% penetration of US retail shops; 16 million actively engaged monthly users; sales 5x those of comps like LFLY [NC] and 8x SBIG [NC]).” He went on to write, “Our anecdotal checks imply dispensary owners remain engaged with the platform and are not cutting spending.” Despite that, the analyst’s estimates for earnings are at the low end of the guidance range that Weedmaps had issued. His forecast is for sales of $60.9 million, while the range is $60 – $63 million.

Visibility Problems

The analyst outlined various issues he has with Weedmap‘s disclosures on its businesses. Zuanic was impressed with the company’s expanded suite of solutions but questioned whether they added to the top-line revenue. He wrote:

For starters, the company does not distinguish between the number of subscribers to the WM platform vs. the average monthly paying clients (AMPC). If we were to
assume both are the same (probably not), then it would seem subscription revenue per client is down (not a signal that paying clients are using the services more). The
company said WM business subscriptions were 20% of sales in 1Q22 vs. 23% in 1Q21; in that period, AMPCs increased 28%, so revenue per client would be down 5%.

The report also questioned the quality of the average monthly paying clients. While Weedmaps said that the AMPC grew, it didn’t dive any deeper into the quality of those accounts. Zuanic points out that he actually thinks this type of detail would be positive for the company. He thinks Weedmaps should break out the top five states and the penetration there. One example he gives is that adding paying clients that have stores with lower revenues isn’t as great as adding a client with higher revenue. He also believes that this type of transparency would shut down the complaints that Weedmaps continues to work with illicit operators – a claim Weedmaps denies.

It was also suggested that Weedmaps begin to report a type of same-store sales statistic. Retailers often use these statistics to show growth in established stores. Zuanic thinks Weedmaps could report on whether its established paying clients are increasing their spending year-over-year. He also would like to see more information regarding the monthly average users. Weedmaps claims it has roughly 40 million users, but of that number – how do they actually use the site? Zuanic would like to see statistics comparing search versus transactions.

Marketing Budgets

Zuanic also took a look at how much companies were allocating in their budgets for Weedmaps and sees a silver lining. He wrote, “We calculate CA accounts are spending about $8,000 per month on the platform (62% of 1Q22 sales of $57.5Mn divided by 3 months and by ~1,400 accounts) vs. >$2,000 for the rest. Very roughly, we estimate CA retailers (brick & mortar and online) generate about $3.8Mn in sales per month ($5.3Bn per year / 1,400 accounts) or $320K per month. If they spend $8,000 on the WM platform, that would be 2.5% of sales. If we assume these stores would spend 7-10% in marketing ($22-32K), then MAPS has room to expand penetration per store.”

StaffDecember 3, 2021


WM Technology, Inc. (Nasdaq: MAPS) filed a Form S-1 with the Securities and Exchange Commission on December 2, 2021 to register for resale shares of Class A common stock of the company previously issued as partial consideration for previously announced acquisitions that occurred in the fiscal third quarter of 2021. Weedmaps said it would not receive any proceeds from the sales of the shares.

In the third quarter Weedmaps bought MembersRSVP, LLC and Text Ripple, Inc. collectively known as “Sprout” and the equity interests of Transport Logistics Holding Company also known as Merry Go Jane (“Cannveya and Canncurrent”). As part of the deal, Weedmaps issued a total of 1,938,798 shares of Class A common stock to certain stakeholders of the counterparties to such transactions.

Back in June, Weedmaps combined with the SPAC Silver Spike Acquisition Corp. and became known as WMH and Silver Spike changed its name to WM Technology, Inc.

As a result of the Business Combination, holders of units of WMH will be able to exchange such Units, together with corresponding shares of Class V common stock of the company, for Class A common stock of the Company during Quarterly Exchange Notice Periods, the first of which begins on the third business day after the Company announces its Q4 FY21 earnings. The company though has not released a date for that announcement. After any such exchange, such holders would be able to sell their shares of Class A Common Stock.

Julie AitchesonNovember 16, 2021


This week Weedmaps (NASDAQ: MAPS) releases “Cannabis in America”, a first-of-its-kind data and insights report on the cannabis marketplace, industry trends, and cultural revelations. This report represents a major step forward in Weedmaps’ intention to become an essential resource of direct-from-consumer data for policy makers, business owners, and investors. The report highlights topics such as the impacts of the Coronavirus pandemic and social justice movement on the cannabis industry as well as a strong trend of cannabis category experimentation, among other topics. The report also highlights the continuing trend of legalization across the country and a corresponding market growth that shows no signs of slowing down.  

Millenial Consumption Increased 57%

“Cannabis in America” shows that cannabis consumers are using and ordering more cannabis than ever before, with more than half increasing their consumption since the start of the pandemic. Generation Z was a particular stand-out demographic, increasing their consumption 125% year-over-year with overall cannabis deliver increasing by 97%. Millennials increased their consumption of cannabis by 57% since the start of the pandemic, placing them just one percentage point behind Gen Zers in increased consumption since the WHO declared Coronavirus a pandemic in March 2020, with Generation X not far behind at 52%. But it’s not only who is consuming cannabis that is significant, but what is being consumed. Weedmaps’ data point to a belief among 47% of cannabis consumers that edibles are becoming more popular, with Vape pends and Topicals not far behind. Millennials appear to be driving demand for products across all categories with a slight preference for concentrates. 

As stigma around cannabis use continues to decrease, it is gaining a foothold in the daily lives of more and more Americans as well as the culture at large. According to the report, 72% of cannabis consumers say that everyone or almost everyone they know uses cannabis while more than half of cannabis non-consumers say they don’t mind members of their social circles using it. More than a quarter of those surveyed claim they would use cannabis in a workplace setting and a full 31% would use cannabis in a multigenerational social setting. 

The Weedmaps report does reveal a need for credible, consistent cannabis education as more than half of consumers get cannabis information from friends and family and 17% get cannabis information from celebrities or use cannabis or have cannabis businesses. While this helps reduce stigma and drive popularity, it does not always result in accurate, safe information about consumption. The need for education is reflected in another area of the study, which looks at a lack of understanding on behalf of non-consumers of how cannabis can impact their local communities. 39% say they are not sure how cannabis legalization laws may affect them personally while 61% say they are not sure what will happen once cannabis is legalized in their state.

Brand Loyalty

A strong trend of consumer brand loyalty may be accelerating growth, with more than 54% of consumers declaring loyalty to a favorite brand, nearly half of all consumers always buying branded products, and half of consumers believing that branded products offer the best results. 48% of consumers overall say they are creatures of habit and prefer to stick to what they are currently using, with a full 60% of baby boomers topping the list of those disinclined to experiment with new products or brands.

But it’s not just about the brand. The fight for social equity is a major concern for consumers, who are demanding that businesses address socioeconomic disparities within the cannabis industry. More than half of those surveyed believe that everyone should have access to opportunities in cannabis with an equal amount expressing the belief that increased equity stands to benefit everyone. Almost half expressed a desire to support women-owned cannabis businesses while nearly as many feel the same about minority-owned businesses. More than a third declared a desire to patronize LGBTQ+-owned businesses and 44% of consumers want to shop at veteran-owned businesses, reflecting an overall trend towards diversification. Weedmaps’ report does show a disconnect, however, between what people are saying they want and what they are willing to support, with only 27% stating support for social equity programs. With 2021 nearly in the rearview mirror and the uncertainties of 2022 looming ahead, analyses such as this that highlight the complexities and contradictions of consumer behavior play a key role in learning for the past and preparing for the future.


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The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


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