Acquisition is critical milestone for LeafLink as it expands financial solutions for cannabis operators
NEW YORK, July 24, 2024 /PRNewswire/ — LeafLink, the nation’s leading cannabis wholesale platform, announced the acquisition of the assets of Dama Financial’s banking division, one of the industry’s largest cannabis banking platforms on the market. This acquisition lays the groundwork for a future integrated banking solution, signifying a monumental step towards eliminating one of the most persistent hurdles facing cannabis operators: the lack of access to secure, reliable, and compliant financial services.
The LeafLink platform currently offers a suite of services for cannabis brands and retailers, including integrated tools like order and category management, payments, data and analytics and advertising. As a result of strong performance, organic growth opportunities, and focused mission to be the B2B operating system for the regulated cannabis industry, LeafLink recently upsized its Series D fundraising round from $100 million to $125 million. Investors in the Series D financing include CPMG, Nosara, L2 Ventures, Thrive Capital, and Tiger Global.
“LeafLink provides customers with integrated tech solutions that make it easier to run their business, and over the last year, we’ve released several products that will significantly improve our customers’ operating performance and profitability,” said Artie Minson, CEO of LeafLink. “After witnessing firsthand the negative impact the federal prohibition has had on operators’ access to traditional banks, we are thrilled to add banking to LeafLink’s product suite. Very few companies and people have the expertise that Dama Financial offers to the cannabis banking space. By joining forces and incorporating Dama’s banking product into our existing robust suite of services, we will be well-positioned to usher in a new era of efficiency and help address some of the biggest challenges cannabis operators face.”
“The cannabis industry is in need of integrated solutions at scale and this deal is a great example of the benefits it will bring to our industry,” said Patrick O’Boyle CEO of GrowFlow (formerly Dama Financial). “LeafLink is in a strong position to take our established banking solution and build on it even further, offering the industry a unified financial services experience. The product lines not included in this acquisition will rebrand to GrowFlow, remaining focused on enhancing and growing our retail and wholesale product lines to service the cannabis industry.”
The ongoing federal prohibition has limited cannabis operators’ access to traditional banks, leaving many businesses in a difficult position with vital services often withdrawn without notice, minimal feature availability, cumbersome processes, or expensive operating costs riddled with hidden fees. Credit unions and small state-chartered banks servicing the remainder of the industry have similar limitations for cannabis operators.
With over $3 billion in processed transactions, Dama Financial is one of the largest cannabis-focused banking solutions in the industry and serves more than half of the cannabis-legal states in the United States. It has earned its reputation as a leader in the space by working closely with leading U.S. sponsor banks to develop bespoke financial solutions for cash-intensive industries, particularly cannabis. With the expertise of banking and payments industry veterans, Dama Financial has been at the forefront of providing access to FDIC-insured banking partners that include everything from checking accounts and payment processing, to cash pickup services and on-site smart safes, all while ensuring transparency and compliance with current banking and cannabis regulations.
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About LeafLink:
Founded in 2016, LeafLink is the wholesale cannabis industry’s leading B2B technology platform helping thousands of customers in 30 markets manage their business. LeafLink believes that better access to modern financial services will propel the industry towards sustainable growth, and in 2024, was awarded Green Market Report’s Best Cannabis Fintech.
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SOURCE LeafLink
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