The U.S. Securities and Exchange Commission has fined the parent company of cannabis advertising platform Weedmaps $1.5 million for allegedly misstating user metrics leading up to its 2021 sale and ensuing listing on the Nasdaq.
In a Sept. 24 consent order, the SEC accused Irvine, California-headquartered WM Technology of repeatedly citing “untrue and misleading” data on “monthly active users” (MAUs) in regulatory filings, earnings reports, marketing materials and investor decks for more than a year.
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That time frame included:
The transaction for the sometimes-controversial retailer advertising and cannabis product review website generated $579 million in gross proceeds for Weedmaps.
SEC: Company ‘misleadingly reported’ growth
“Both during the de-SPAC transaction and after WM Technology became public, WM Technology misleadingly reported substantial and continued MAU
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