WM Technology Inc.: Recovery of Investment Losses

Have you suffered losses investing in WM Technology Inc.(formerly known as Silver Spike Acquisition Corp.) at the recommendation of your financial advisor? If so, the securities attorneys at The White Law Group may be able to help you by filing a FINRA lawsuit against your brokerage firm.

What is WM Technology (Silver Spike Acquisition Corp.)?

WM Technology reportedly operates a leading online cannabis marketplace for consumers and provides eCommerce and compliance software solutions for cannabis businesses, according to Nasdaq.com.

Originally known as WM Holding Company, LLC (Legacy WM), it reportedly became a public company on June 16, 2021, after merging with the Special Purpose Acquisition Company (SPAC) Silver Spike Acquisition Corp. Silver Spike reportedly filed a form D in 2020 to raise capital from investors. The total offering amount was purportedly $325,000,000.

Prior to the merger, Silver Spike traded on NASDAQ as “SSPK.” Following the merger, the combined entity was renamed WM Technology and now trades publicly under the ticker “MAPS.”

WM Technology Inc.: Class Action Lawsuit

A class action securities lawsuit was reportedly filed against WM Technology, Inc. for alleged securities fraud, according to reports on November 3, 2024.

According to the press release, the filed complaint alleges that the defendants made materially false and misleading statements in the name of the company.

Potential Stock Delisting

On October 9, 2024, WM Technology, Inc. received a letter of deficiency from the The Nasdaq Stock Market LLC notifying the Company that, for the last 30 consecutive business days, the closing bid price for the Company’s Class A common stock, par value $0.0001 per share, was below $1.00 per share, which is the minimum closing bid price required for continued listing.

Risks of Investing in SPACs

A SPAC (Special Interest Acquisition Company) is a unique investment vehicles that raises capital through an IPO with the sole purpose of acquiring an existing company.

Like all investments, there are risks that come with investing in SPACs. Due diligence of the SPAC process is not as rigorous as a traditional IPO and SPAC sponsors aren’t looking out for retail investors’ best interests.

Since the SPAC sponsors are the ones who choose what entity to acquire, this increases the possibility of self-dealing and may lead the SPAC to pay a premium price for the company at a detriment to investors. Shareholder dilution could also be a problem, due to large fees and a 20% stake by the sponsors, plus a warrant to buy more shares.

If there are too many investors in a SPAC, then a capital short fall may occur. There is also the possibility that the target companies may have their acquisition rejected by SPAC shareholders.

While there have been some successes with a few high-profile SPACs, the average returns from SPAC mergers fell short of the average post-market return for investors from an IPO, according to reports.

Class Action vs. Individual FINRA Arbitration Lawsuit

You may wonder whether a large class action lawsuit is a better litigation option than an individual FINRA arbitration case.  The answer depends on many factors, but typically if the loss sustained is large (say larger than $100,000), an individual arbitration claim is likely a better option.  Class actions as a recovery option are more appropriate for grouping large numbers of individuals who have small claims – too small to generally pursue individually.

Free Consultation with a FINRA Attorney

If you have suffered investment losses in WM Technology Inc.(Silver Spike Acquisition Corp.) you may have recovery options. Please call the securities attorneys at The White Law Group for a free consultation at 1-888-637-5510.

About The White Law Group 

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington. The firm represents investors across the country in claims against their brokerage firms.