By Chris Wack

Merida Merger Corp. I shares were up 19% to $9.99 in premarket trading Wednesday after the company said it and Leafly Holdings Inc. entered into a $30 million convertible note purchase agreement with new investors led by Cohanzick Management LLC.

The special-purpose acquisition company sponsored by Merida Capital Holdings in August entered into a deal with Leafly to take the cannabis marketplace public in a deal that values the combined company's equity at about $532 million.

Merida Merger said the supplemental financing, which will close immediately prior to the closing of the proposed business combination, will help to ensure full funding of Leafly's current multi-year business plan.

Merida also said that its special meeting to vote on the proposed business combination, originally scheduled for Friday, will be adjourned to a later date to be announced, to give Merida stockholders sufficient time to evaluate the terms of the note financing and certain additional information. As a result, the date for holders of Merida public shares to request redemption will be extended to two business days prior to the date that meeting is held to vote on the proposed business combination.

The $30 million financing will be in the form of unsecured convertible senior notes due 2025, the company said. The notes will bear interest at a rate of 8.00% a year, paid in cash semi-annually in arrears on July 31 and Jan. 31 of each year.

Under the terms of the note purchase agreement, Merida said it has agreed to pay Cohanzick a 1.25% commitment fee, which fee will be paid through the transfer of shares of Merida common stock held by Merida's sponsor, and transfer an aggregate of 300,000 private warrants held by the sponsor to the investors.

Write to Chris Wack at chris.wack@wsj.com

(END) Dow Jones Newswires

01-12-22 0700ET