In a recent press release, High Times Holding Corp, the marijuana-enthusiast mega-corporation, announced that they would accept shares for digital assets in its Initial Public Offering (IPO). The cannabis-focused company had commented that cryptocurrencies would be a recognized tender. However the company seems to have reversed that decision.
The US Securities and Exchange Commission (SEC), released in a document that the cannabis company had made the announcement “in error”. This “error” was to be the vanguard company to allow Bitcoin as an acceptable exchange for stock, and made a huge stir within the crypto community.
Adam Levin, High Times CEO, had previously stated in the initial announcement that his company was “at the forefront of popular culture for more than four decades” and was “taking another step into the future” with the company’s IPO.
Levin had said in the original announcement:
“Beginning with our Reg. A+ crowdfunding, we’ve been focused on giving everyone from retail investors to long-time fans more ways to own a piece of High Times. While we didn’t believe that the ICO process was the right move for our brand, it would’ve been foolish to leave this emerging investor base out as we continue to transform into a diversified media, events and merchandise giant. Cryptocurrencies have created a new investor base across the world – we’re just giving them more stable opportunities for investment.”
This reversal puts High Times back on path to go through its IPO using the usual method of accepting fiat currency in exchange for shares.
As the filing reads:
“This press release was distributed in error as the Company will not be accepting bitcoin as payment for shares. As provided in the Company’s subscription agreement related to the offering, the Company will only be accepting check, credit card, ACH or wire transfer as payment for subscription to shares.”