WM Technology to Delist from Nasdaq, Citing Compliance Burdens

The cannabis tech company will transition its shares to the OTC Markets as it navigates evolving regulations.

Apr. 8, 2026 at 1:00am

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A minimalist, photorealistic studio still-life featuring a stack of financial documents, a calculator, and a gavel on a clean, monochromatic background, conceptually representing the corporate strategy and regulatory challenges facing the cannabis tech company.The delisting of WM Technology from Nasdaq reflects the compliance burdens and regulatory constraints facing cannabis-related companies.Irvine Today

WM Technology Inc., the parent company of the Weedmaps online cannabis marketplace, has announced plans to voluntarily delist its Class A common stock and warrants from the Nasdaq Global Select Market. The company cited thin trading volumes, high compliance costs, and regulatory constraints as the primary drivers for the decision, which will see its shares transition to the OTC Markets.

Why it matters

The move reflects the challenges facing cannabis-related companies as they navigate the evolving regulatory landscape. WM Technology's delisting highlights the compliance burdens and limited analyst coverage that can make a Nasdaq listing difficult to sustain, especially for firms in emerging industries like legal cannabis.

The details

WM Technology disclosed that its board had received an internal complaint about the calculation and reporting of its monthly active users (MAUs), a key metric for the company. An SEC investigation found that the company had cited misleading MAU data in its regulatory filings, leading to a $1.5 million settlement. The company also faced multiple delinquency notices from Nasdaq for failing to file annual and quarterly reports on time. Additionally, a failed 2025 bid by the company's co-founders to take the firm private contributed to the decision to delist.

  • WM Technology will voluntarily delist from the Nasdaq Global Select Market, with the last day of trading expected to be April 24, 2026.
  • In August 2022, WM Technology disclosed an internal complaint about the calculation and reporting of its monthly active users (MAUs).
  • In September 2024, WM Technology agreed to pay a $1.5 million civil penalty to settle SEC charges related to misleading MAU data.
  • In April and May 2024, Nasdaq issued delinquency notices to WM Technology for failing to file its 2023 annual report and Q1 2024 quarterly report on time.
  • In February 2026, Nasdaq issued a deficiency notice to WM Technology because its stock had traded below $1 for 30 consecutive business days.

The players

WM Technology Inc.

The parent company of the Weedmaps online cannabis marketplace, which is voluntarily delisting its Class A common stock and warrants from the Nasdaq Global Select Market.

Christopher Beals

Former CEO of WM Technology, who paid a $175,000 civil penalty and was barred from serving as an officer or director of a public company for three years due to the SEC settlement.

Arden Lee

Former CFO of WM Technology, who paid a $175,000 civil penalty and was barred from serving as an officer or director of a public company for three years due to the SEC settlement.

Doug Francis

Co-founder of WM Technology, who submitted a nonbinding proposal to take the company private in 2024.

Justin Hartfield

Co-founder of WM Technology, who submitted a nonbinding proposal to take the company private in 2024.

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What they’re saying

“We believe this decision is in the best interests of our shareholders, customers, and employees as we navigate the evolving regulatory landscape and focus on driving long-term value creation.”

— Chris Beals, Former CEO, WM Technology

What’s next

WM Technology will file a Form 25 with the SEC to formally remove its Class A common stock and warrants from Nasdaq and deregister them under the Securities Exchange Act of 1934. The company also plans to file a Form 15 to terminate its reporting obligations once it is eligible to do so.

The takeaway

The delisting of WM Technology from Nasdaq highlights the challenges facing cannabis-related companies as they navigate the evolving regulatory landscape. The decision reflects the compliance burdens and limited analyst coverage that can make a Nasdaq listing difficult to sustain, especially for firms in emerging industries like legal cannabis.