Exhibit 10.1


 


 


 


Leafly Announces Financial
Results for the Nine Months Ended September 30, 2021


 


Total revenue up 14% for the nine-month period
and 21% for the quarter ended September 30, 2021


 


SEATTLE, WA (November 29, 2021) -- Leafly Holdings
Inc. (“Leafly” or the “Company”), one of the world’s leading cannabis discovery marketplaces and resources,
today announced financial results for the three and nine months ended September 30, 2021. The Company generated $31.0 million in revenue
for the nine-month period and $27.4 million in gross profit. For the quarter ended September 30, 2021, revenue grew 21% over the same
period in 2020, representing a significant acceleration from the Company’s 11% year-over-year revenue growth for the six months
ended June 30, 2021.


 


“Our successful results year-to-date, building
on the momentum we have generated over the last year, are a testament to the power of our marketplace and the dedication of the skilled,
rapidly growing Leafly team,” said Yoko Miyashita, Leafly Chief Executive Officer. “As we ramp up our next phase of growth,
entering the public markets through our partnership with Merida Capital will facilitate significant investments in our brands platform,
robust advertising tools, and unmatched insights and information – as well as reinforcing our leadership position in newly legal
East Coast markets.”


 


Financial
Highlights


 


		●	Achieved
                                            year-to-date revenue of $31.0 million, representing a 14% increase compared to the nine months
                                            ended September 30, 2020.



 


		●	Reported
                                            88.5% gross margin on $27.4 million in gross profit, a 16% increase compared to the nine
                                            months ended September 30, 2020.



 


		●	Total
                                            Ending Retail Accounts grew 40% to 4,769 from September 30, 2020.



 


		●	For
                                            the nine months ended September 30, 2021, Retail revenue grew 12% while Brands revenue grew
                                            23% over the prior year period. In the third quarter ended September 30, 2021, Retail revenue
                                            grew 15% year over year, while Brands revenue grew 51%.



 


Company
Updates


 


		●	Announced
                                            a definitive agreement for a business combination between Leafly and Merida Merger Corp.
                                            I, through which Leafly will become a public company and trade on the NASDAQ under the ticker
                                            symbol LFLY. We currently anticipate the transaction will close late in the fourth quarter
                                            of 2021.



 


		●	Announced
                                            key leadership additions, including Suresh Krishnaswamy as Chief Financial Officer and Kimberly
                                            Boler as General Counsel. Last week, Leafly announced the appointment of Rebecca Warner,
                                            who brings more than 14 years of leadership experience in advertising sales and online
                                            marketplace growth, as the Company’s new SVP of Sales.



 






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		●	Introduced
                                            expanded advertising tools for Brands subscribers, including more robust reporting and insights,
                                            increased visual customization, increased catalog control, and top-of-page carousel placements
                                            within dispensary pages.



 


		●	Launched
                                            an update to Leafly’s app allowing iPhone and iPad users to place pickup orders for
                                            cannabis products in legal state markets.



 


Cannabis
Legalization Momentum


 


Support for cannabis legalization in the U.S. remains strong, with the most recent poll from Gallup showing 68% support for legalizing
cannabis across the country. The support is bi-partisan, as evidenced by the recent introduction of the States Reform Act by Republican
members of Congress, as well as the House's approval of the Marijuana Opportunity and Reinvestment Act, and the introduction of the Cannabis
Administration and Opportunity Act by Senate Majority Leader Chuck Schumer.  At the state level, efforts to end prohibition continue
to make progress, with New Jersey the latest to prepare for the launch of adult-use sales, in addition to recent license issuances expanding
the medical market in the state.


 


Yoko Miyashita added, “We are encouraged
to see continued legalization tailwinds across the U.S., particularly in East Coast markets where Leafly is the clear leader and we have
tremendous growth opportunities. While our business model has demonstrated success within the country’s current legal framework,
sustained legalization momentum provides meaningful upside to our growth trajectory.”


 


About Leafly


 


Cannabis discovery marketplace Leafly aims to
help more than 125 million visitors discover cannabis this year. Our powerful ecommerce tools help shoppers make informed purchase decisions
and empower cannabis businesses to attract and retain loyal customers through advertising and technology services. Learn more at Leafly.com
or download the Leafly mobile app through Apple’s App Store or Google Play.


 


About Merida Merger Corp. I


 


Merida Merger Corp. I is a blank check company
formed for the purpose of entering into a merger, share exchange, asset acquisition, stock purchase, recapitalization, reorganization
or other similar business combination with one or more businesses or entities.


 


Cautionary Note Regarding Forward Looking Statements


 


This document includes “forward-looking
statements” (as defined in the Private Securities Litigation Reform Act of 1995). Merida’s and Leafly’s actual results
may differ from its expectations, estimates and projections and consequently, you should not place undue reliance on these forward-looking
statements as predictions of future events. These forward-looking statements generally are identified by the words “aspire,”
“expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,”
“intend,” “plan,” “may,” “will,” “will be,” “will continue,” “will
likely result,” “could,” “should,” “believe(s),” “predicts,” “potential,”
“continue,” “future,” “opportunity,” “strategy,” and similar expressions are intended
to identify such forward-looking statements.


 






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These forward-looking statements are not guarantees
of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important
factors, many of which are outside Merida or Leafly management’s control, that could cause actual results to differ materially from
the results discussed in the forward-looking statements. Factors that may cause such differences include, but are not limited to: (a)
the risk that the benefits of the Business Combination may not be realized; (b) the risk that the Business Combination may not be completed
in a timely manner or at all, which may adversely affect the price of Merida’s securities; (c) the failure to satisfy the conditions
to the consummation of the Business Combination, including the failure of Merida’s stockholders to approve and adopt the Agreement
and Plan of Merger (the “Merger Agreement”), dated as of August 9, 2021 and amended on September 8, 2021, by and among Merida,
Merida Merger Sub, Inc., a Washington corporation and wholly-owned subsidiary of Merida, Merida Merger Sub II, LLC, a Washington limited
liability company and wholly-owned subsidiary of Merida, and Leafly or the failure of Merida to satisfy the Minimum Cash Condition (as
defined in the Merger Agreement) following redemptions by its stockholders; (d) the occurrence of any event, change or other circumstance
that could give rise to the termination of the Merger Agreement; (e) the outcome of any legal proceedings that may be initiated following
announcement of the Business Combination; (f) the combined company’s continued listing on Nasdaq; (g) the risk that the proposed
transaction disrupts current plans and operations of Leafly as a result of the announcement and consummation of the Business Combination;
(h) costs related to the Business Combination; changes in applicable laws or regulations; (i) the possibility that the combined company
may be adversely affected by other economic, business, and/or competitive factors; (j) the impact of COVID-19 or other adverse public
health developments; and (k) other risks and uncertainties that are detailed in Merida’s Registration Statement on Form S-4 (as
amended, the “Registration Statement”) and as indicated from time to time in Merida’s other filings with the SEC. These
filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from
those contained in the forward-looking statements.


 


Merida and Leafly caution that the foregoing list
of factors is not exclusive. Merida and Leafly caution readers not to place undue reliance upon any forward-looking statements, which
speak only as of the date made. Neither Merida nor Leafly undertake or accept any obligation or undertaking to release publicly any updates
or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions or circumstances
on which any such statement is based.


 


Disclaimer


 


This document is not a proxy statement or solicitation
of a proxy, consent or authorization with respect to any securities or in respect of the transaction and does not constitute an offer
to sell, buy, or exchange or the solicitation of an offer to sell, buy, or exchange any securities or the solicitation of any vote or
approval in any jurisdiction, nor shall there be any sale, purchase, or exchange of securities or solicitation of any vote or approval
in any jurisdiction in contravention of applicable law.


 






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Additional Information and Where to Find It


 


In connection with the proposed transaction between
Merida and Leafly, Merida has filed with the SEC the Registration Statement. Merida plans to mail the definitive proxy statement/prospectus/consent
solicitation statement included in the Registration Statement to its stockholders in connection with the Business Combination. INVESTORS
AND SECURITYHOLDERS OF MERIDA ARE URGED TO READ THE REGISTRATION STATEMENT AND THE PROXY STATEMENT/PROSPECTUS/CONSENT SOLICITATION STATEMENT
(AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS THERETO) AND OTHER RELEVANT DOCUMENTS FILED OR TO BE FILED WITH THE SEC CAREFULLY WHEN THEY
BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT LEAFLY, MERIDA, THE TRANSACTIONS AND RELATED MATTERS. Investors
and securityholders will be able to obtain free copies of the Registration Statement (and any amendments or supplements thereto) and other
documents filed with the SEC by Merida through the website maintained by the SEC at www.sec.gov.


 


Participants in the Solicitation


 


Merida, Leafly, and certain of their respective
directors, executive officers, and employees may be considered to be participants in the solicitation of proxies in connection with the
Business Combination. Information regarding the persons who may, under the rules of the SEC, be deemed participants in the solicitation
of the stockholders of Merida in connection with the Business Combination, including a description of their respective direct and indirect
interests, by security holdings or otherwise, will be included in the Proxy Statement described above when it is filed with the SEC. Additional
information regarding Merida’s directors and executive officers can also be found in Merida’s final prospectus dated November
4, 2019 and filed with the SEC on November 5, 2019. These documents are available free of charge as described above.


 


Condensed Consolidated Statement of Operations


 


	 	 	Nine Months Ended	 
	Unaudited, $ in thousands	 	September 30,	 
	 	 	2021	 	 	2020	 
	Revenue	 	$	30,959	 	 	$	27,102	 
	Cost of revenue	 	 	3,565	 	 	 	3,573	 
	Gross margin	 	 	27,395	 	 	 	23,529	 
	 	 	 	 	 	 	 	 	 
	Operating expenses	 	 	 	 	 	 	 	 
	Sales and marketing	 	 	13,148	 	 	 	9,843	 
	Product development	 	 	9,905	 	 	 	11,549	 
	General and administrative	 	 	10,484	 	 	 	10,468	 
	Total operating expenses	 	 	33,538	 	 	 	31,861	 
	Loss from operations	 	 	(6,143	)	 	 	(8,331	)
	Interest expense, net	 	 	(698	)	 	 	(628	)
	Other expense, net	 	 	(39	)	 	 	(18	)
	Net loss	 	$	(6,880	)	 	$	(8,977	)



 


Contacts


 


Media


Laura Morarity


laura.morarity@leafly.com


 


Investors


IR@leafly.com


 


 


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