3 Reasons WM Technology’s Co-Founders Propose Take-Private Deal

3 Reasons WM Technology’s Co-Founders Propose Take-Private Deal

WM Technology, Inc. (“WM Technology” or the “Company”) (Nasdaq: MAPS), a leading provider of technology and software solutions to the cannabis industry, has confirmed the receipt of a non-binding proposal (the “Proposal”) from its co-founders, Douglas Francis and Justin Hartfield. The Proposal, dated December 17, 2024, outlines a plan to acquire all outstanding shares of the Company’s common stock (Class A and Class V) that the co-founders do not currently own.

Francis, who serves as WM Technology’s Chief Executive Officer and Chairman of the Board, and Hartfield, a substantial stockholder, collectively own approximately 32% of the Company’s outstanding common stock. Their Proposal offers $1.70 per share for the remaining stock.

The terms of the Proposal are conditional and remain subject to further review. A copy of the Proposal has been attached as Annex A to the Company’s official release.

WM Technology
WM Technology
Formation of a Special Committee

To evaluate the Proposal, the Company’s Board of Directors has established a special committee comprised of independent and disinterested directors. This committee has engaged Evercore Group L.L.C. as its independent financial advisor and Allen Overy Shearman Sterling US LLP as its independent legal advisor to provide expert guidance.

The special committee plans to thoroughly analyze the Proposal, leveraging the expertise of its financial and legal advisors. Their objective is to act in the best interests of all WM Technology stockholders, ensuring any decision aligns with the Company’s long-term value and stakeholder equity.

It is important to note that there is no guarantee a definitive agreement will be reached or that the proposed transaction—or any transaction—will be approved or completed. The Company has stated that no immediate action is required by stockholders at this time. Additionally, WM Technology does not intend to provide updates on the Proposal unless deemed necessary or required by applicable regulations.

The Board of Directors has established a Special Committee to oversee key organizational decisions and initiatives. This committee, composed of independent members, aims to ensure transparency, accountability, and alignment with shareholder interests. It will evaluate strategic opportunities, assess governance practices, and provide recommendations on critical matters. By leveraging diverse expertise, the Special Committee seeks to address challenges and unlock potential growth avenues for the organization. The formation of this committee underscores the Board’s commitment to robust oversight and effective decision-making. Regular updates on its findings and actions will be communicated to stakeholders to maintain confidence and trust.

About WM Technology

Established in 2008, WM Technology is renowned for operating Weedmaps, a premier cannabis marketplace that connects consumers with cannabis-related products and services. Beyond Weedmaps, the Company offers a suite of eCommerce and compliance software solutions tailored to cannabis businesses and brands operating in U.S. state-legal markets.

Weedmaps has evolved over the last 15 years into a leading platform where consumers can discover cannabis products, explore dispensary deals, and place orders for pickup or delivery through participating retailers. The platform is also a hub for education, helping users learn about cannabis and its benefits.

For cannabis retailers and brands, WM Technology provides innovative tools to enhance business efficiency, optimize consumer reach, and ensure compliance with complex industry regulations.

Commitment to Advocacy and Industry Growth

WM Technology is dedicated to advancing the cannabis industry through advocacy for full legalization in the United States, promoting social equity within the sector, and fostering continued education about cannabis. The Company collaborates with key industry partners and experts to drive awareness and support for these initiatives.

Headquartered in Irvine, California, WM Technology supports a remote and hybrid work environment for eligible employees, reflecting its modern and flexible organizational culture.

For more information about WM Technology and Weedmaps, visit www.weedmaps.com.

Summary

The Proposal from WM Technology’s co-founders signals their intent to consolidate ownership and take the Company private, reflecting their confidence in its potential and growth trajectory. While the special committee evaluates the Proposal, the outcome remains uncertain, and stakeholders are advised to await further developments.

Through its dual focus on consumer engagement and business enablement, WM Technology continues to solidify its position as a leader in the cannabis industry, shaping its future amid a dynamic and evolving market landscape.

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