Davis Polk is advising Silver Spike Acquisition Corp., a publicly-traded SPAC, in connection with its business combination with WM Holding Company, LLC that would result in WMH becoming a public company. The combined company is expected to remain listed on the Nasdaq Stock Market. The estimated post transaction equity value of the combined company is approximately $1.5 billion and provides up to $575 million of gross proceeds through the approximately $250 million of cash held-in-trust by Silver Spike Acquisition Corp. and a fully-committed common stock PIPE of $325 million. The transaction, which has been unanimously approved by the Boards of Directors of WMH and Silver Spike, is subject to approval by Silver Spike’s shareholders and other customary closing conditions.
Founded in 2008, WMH, parent company of Weedmaps and its WM Business SaaS offering, is the leading technology and software infrastructure provider to the cannabis industry. WMH is the leading two-sided marketplace and SaaS provider to the cannabis industry, comprising the company’s B2C marketplace, Weedmaps and its B2B software, WM Business. Silver Spike Acquisition Corp., an affiliate of Silver Spike Capital, is a SPAC formed for the purpose of effecting a merger, amalgamation, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses.
The Davis Polk corporate M&A and capital markets team includes partners Derek Dostal and Lee Hochbaum and associates Jeffrey Scharfstein, Rahul K. Patel, Lucas Wozny and Jerry O'Young. The tax team includes partner William A. Curran and associate Elina Khodorkovsky. Partner Adam Kaminsky is providing executive compensation advice. Partner Margaret E. Tahyar is providing financial institution advice. Members of the Davis Polk team are based in the New York and Washington DC offices.