Added to YB: 2024-02-05
Pitch date: 2024-02-04
MAPS [bullish]
WM Technology, Inc.
Author Info
Clark Square Capital is a former equity analyst and now a full-time investor managing their own capital. Sign up for their newsletter
Company Info
WM Technology, Inc. provides ecommerce and compliance software solutions to retailers and brands in cannabis market in the United States and internationally.
Market Cap
$95.1M
Pitch Price
N/A
Price Target
4.30
Dividend
N/A
EV/EBITDA
5.08
P/E
-14.38
EV/Sales
0.95
Sector
Software
Category
special_situation
A pick-and-shovel play with a major catalyst
MAPS (new position): Leading cannabis marketplace Weedmaps at $0.84/share, $140m cap, ~$30m net cash, <3x adj EBITDA, ~0.6x EV/sales. Catalyst: 2024 cannabis rescheduling to Sch III kills Section 280E, freeing ~$2B in taxes to reinvest in marketing—Weedmaps a top beneficiary via network effects. 2023: ~$200m rev, ~$38m EBITDA (20% margin, 90%+ GM). Best legal pick-and-shovel play (Nasdaq-listed). Downside $0.65 (-20%), upside ~$4.30 (10x $68m EBITDA), ~18x r/r. Risks: no reschedule, timing delays, weak industry.
Read full article (11 min)