NEW YORK – Media studies this week mentioned iconic hashish model Hightimes Holding Corp.—mother or father firm of High Times journal—has been prevented from promoting shares to buyers. The cease order got here from the Securities and Exchange Commission (SEC), which cited Hightimes’ failure to file its annual earnings report that was due in June.
After initially asserting plans to go public in July 2017, Hightimes’ path to being publicly traded has seen a number of delays and a number of other forward-looking, multi-million greenback acquisitions of varied hashish companies, which had been introduced by the corporate solely to fall by way of or acquired no additional remark from Hightimes.
In July 2018, Hightimes introduced its intentions to promote inventory to buyers by way of a crowd-sourced IPO, previous to itemizing on the Nasdaq index; on the time, the corporate additionally introduced former President of Mexico Vicente Fox Quesada had joined its board of administrators.
“The Regulation A+ filing allows investors to buy common stock shares in High Times without waiting until the Nasdaq listing. Investors can buy one of the first cannabis-related stocks expected to go public,” Hightimes mentioned in 2018.
The firm additionally mentioned that it hopes to listing over-the-counter (OTC).
Since 2018, the corporate has skilled what some have known as a “revolving door” in its C-suite. Hightimes Holding Co. board chairman and present Chief Executive Officer Adam Levine, who purchased High Times in 2017 with a bunch of buyers, lately introduced a collection of high-dollar, excessive profile acquisitions.
The firm acquired “[email protected] Enterprises Inc. in Redding [California] and 530 Collective in Shasta Lake [California] in exchange for $350,000 and $150,000 in cash, respectively,” the L.A. Business Journal mentioned in June. The acquisitions adopted intently behind an $80 million greenback deal to amass 13 dispensaries places in Arizona, from Harvest Health & Recreation, Inc.
Earlier in June, Hightimes made a licensing take care of Canadian firm Red, White & Bloom Brands, Inc., so as to add eighteen dispensaries in Illinois and Florida to its portfolio. The shops shall be rebranded as “High Times” dispensaries.
The model additionally lately made a deal to amass California-based hashish supply service Mountain High Recreation, Inc., in an all-stock sale price $2.eight million.
Like most multimedia corporations which were affected by the COVID-19 pandemic, High Times beforehand noticed most of its income come from stay occasions, together with widespread High Times Cannabis Cup Awards and client hashish reveals, which now have been halted for the foreseeable future attributable to social distancing.
Live occasions that appeal to large crowds have been cancelled globally for 2020, and are unlikely to be rescheduled till 2021, if then. Efforts to broaden into retail product gross sales make sense for Hightimes, in an try to make up for tremendously lowered revenues from stay occasions.
Questions have been raised by monetary pundits and insiders concerning Hightimes’ valuation, in addition to acquisitions and actions taken. Investors had been attributable to obtain “updated financial information” in mid-June, however reportedly haven’t but acquired info from the corporate.
Speculation continues to swirl across the supply of funding for a number of acquisitions, how current offers may have an effect on the earnings report, government comings and goings, in addition to whether or not or not the enduring journal will be capable of climate the transition from print promoting to internet advertising revenues. The firm additionally has been plagued with lawsuits.
Lack of transparency over a number of years of bulletins by Hightimes—with nonetheless no inventory index itemizing in sight—has triggered many to marvel if the corporate will survive.
In December 2019, mg Retailer reported on High Times’ most up-to-date submitting with the SEC, and quoted the corporate’s assertion: “Because of recurring operating losses, net operating cash flow deficits, and an accumulated deficit, there is substantial doubt about the company’s ability to continue as a going concern for one year from the issuance of the financial statements.”
“The company’s debt load appears to be the result of aggressive expansion predicated on a planned 2018 initial public offering on the NASDAQ or OTCQX. Hightimes Holding delayed the offering, focusing instead on an interim crowd-sourced IPO launched in July 2018. The effort stalled after raising $15.2 million, far short of the maximum $50 million the company projected and nowhere near the liquidity required for the stock to trade on public markets,” mg Retailer commented on the time.