#USA #New York #LeafLink #Leaf Trade #cannabis industry

LeafLink Expands Its Reach by Acquiring Leaf Trade

In a significant move within the cannabis industry, LeafLink, recognized as the leading wholesale platform, has successfully acquired Leaf Trade, a well-respected wholesale marketplace primarily utilized by multi-state operators (MSOs) and large-scale cannabis enterprises. This strategic acquisition is poised to create a synergistic effect, unifying and enhancing the tools available for businesses across the cannabis spectrum, from budding entrepreneurs to established MSOs.

The Deal and Its Implications

The merger is set to facilitate nearly $9 billion in wholesale gross merchandise value (GMV) annually. By integrating Leaf Trade’s capabilities, LeafLink aims to support a diverse range of cannabis businesses more efficiently, allowing for streamlined operations and improved access to essential marketplace tools. The technology platforms of both companies are expected to remain operational as they work towards a full integration roadmap, ensuring current services continue without disruption.

Artie Minson, President and CEO of LeafLink, expressed enthusiasm about the acquisition, highlighting the importance of combining the strengths of both firms. He stated, “Our mission at LeafLink is to help the regulated cannabis industry reach its greatest potential. We are committed to implementing standards that streamline operational processes and improve financial performance.” Minson also emphasized the critical nature of technology integration in achieving long-term success in the cannabis market.

On the other hand, Brian Ward, CEO of Leaf Trade, noted that the acquisition marks a remarkable victory for both companies and the advancement of the industry as a whole. He pointed to Leaf Trade’s successful growth trajectory and profitability before the acquisition, acknowledging that joining forces with LeafLink will allow them to develop even more innovative solutions that add-value across the entire supply chain.

Enhancing the Cannabis Technology Landscape

In recent times, LeafLink has introduced a variety of products that bolster its service offerings. Notable additions include the Payment on Sell-Through feature, touted as an industry-first fintech tool aimed at streamlining payments, and LeafLink Plus, a subscription service that provides users with advanced inventory analytics. These new features are part of LeafLink's broader goal to become the B2B operating system for the regulated cannabis sector, aligning with its mission to create sustainable growth frameworks.

The strategic acquisition of Dama Financial, a leading cannabis banking platform, further underscores LeafLink's commitment to providing access to reliable and compliant financial services for cannabis operators, ensuring that they have the tools necessary for effective business management and growth.

Future Prospects

The dynamics of the cannabis industry continue to evolve rapidly, and LeafLink is adapting by increasing its Series D fundraising round, boosting it from $100 million to $125 million. This uptick in funding has attracted several prominent investors, including CPMG, Nosara, and Tiger Global, among others. The additional investment is expected to fuel further innovation within the LeafLink platform and solidify its market position.

Founded in 2016, LeafLink has quickly established itself as a pivotal player in the wholesale cannabis landscape, assisting thousands of clients across more than 30 markets. Its core belief that enhanced access to modern financial services will propel the industry towards sustainable growth continues to resonate through its operational strategies.

Concluding Thoughts

The acquisition of Leaf Trade represents a transformative moment for LeafLink, promising to elevate its service offerings and broaden its customer base. As the cannabis industry matures, firms like LeafLink are essential in creating infrastructures that not only support current business operations but also pave the way for future growth and innovation. With this acquisition, both firms have explicitly stated their commitment to enhancing the operational landscape of the cannabis industry, fostering an ecosystem where all players—from cultivators to retailers—can thrive.