Cannabis Brand High Times To Become ‘First Ever’ IPO To Accept Crypto

Francisco Memoria
  • Cannabis brand High Times is reportedly going to become the "first ever" to accept cryptocurrencies in its initial public offering (IPO)
  • The move, according to its CEO, is meant to avoid leaving crypto investors out, and to be at the forefront of popular culture.

Cannabis culture media firm High Times Holding, which claims to be the “original voice in cannabis,” has recently revealed it’ll accept bitcoinand ethereum in its initial public offering (IPO), allegedly making it the ‘first ever’ to accept cryptocurrency investments.

According to a post on its website, the firm is set to accept cryptocurrencies as its part of its mission to be “at the forefront of popular culture.” High Times is selling its shares at $11, with the minimum investment amount being of $99. The brand is looking to go public on the Nasdaq exchange, with the ticker “HITM.”

To accept the cryptocurrencies the firm filed a Regulation A+ report with the US Securities and Exchange Commission (SEC), which details a near $29 million negative equity reduction, a decrease in operating losses, and debt reduction.

The Regulation A+ (Reg A+) lets small and early-stage companies access capital in an “alternative to a traditional IPO” that lets them sell shares to the general public and not just accredited investors. According to Nasdaq, the filing lets businesses raise as much as $50 million in a 12-month period from members of the public.

Per High Times CEO Adam Levin, cryptocurrencies created a new “investor base across the world” the company didn’t want to exclude from its IPO. He was quoted as saying:

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.

Adam Levin

High Times was notably launched back in 1974, and is now seen as one of the most important media organizations in the industry, with an online magazine whose “presence [is] still going strong.”

Cannabis and Crypto

Cryptocurrencies have been pointed to as a solution to one of the cannabis industry’s problems. In the US state ballot initiatives made marijuana usage legal, but a number of banks refuse to offer cannabis-related businesses banking services. As a result, these operate only in cash.

Operating this way makes cannabis businesses a target for criminals, and forces them to spend money on security: safes, armored vehicles, guards and more. Given their features, cryptocurrencies could be adopted as a safer and cheaper alternative.

The Dash community has worked to be more involved in the cannabis industry. Last year, dash partnered with Alt Thirty Six, paying it $496,000 to “integrate Dash as a payment option in the cannabis industry’s point of sale (POS) systems.” The move was set to help vendors save 10-15 percent.

Potcoin, a cryptocurrency created for the cannabis industry, made headlines earlier this year after former NBA star-turned diplomat Dennis Rodman appeared on CNN wearing a Potcoin t-shirt.

Binance Coin Could Face ‘Bloody Correction’ if Margin Trading Rollout Goes Awry, Analyst Claims

Josh Rager, a cryptocurrency trader and analyst popular on social media, has recently predicted that Binance Coin (BNB), the cryptocurrency of leading crypto exchange Binance, could face a ‘bloody correction’ if anything goes wrong with the rollout of its margin trading feature.

On microblogging platform Twitter the trader reminded his followers that all markets correct, and that a failure in the rollout of its margin trading options could be a trigger that sees traders dump BNB.

Data from CryptoCompare shows the BNB token has been having an incredible year so far. While in early January the cryptocurrency was trading at about $6, it has since surged to hit the $35 mark this month. In the last six months, cryptocurrency’s price has risen by over 500%.

This saw Binance Coin become the seventh largest cryptocurrency by market cap. Its price rose as the exchange has been seeing various positive developments, among them the launch of Binance Jersey, which lets users trade BTC and ETH for EUR and GBP, and the launch of a decentralized exchange that lets users trade directly from their wallets.

This month, the cryptocurrency surged to a new all-time high after it teased the rollout of margin trading, a feature seen as an important growth factor for crypto trading. So far, Binance stayed away from it, while exchanges like Kraken and Poloniex already offer it to its users.

Speaking to TechCrunch, a Binance representative reportedly confirmed that the exchange is going to launch margin trading “soon.” To Josh Rager, if “anything remotely goes wrong” with the launch, the price of Binance Coin will “dump like no other.”

It’s worth noting, however, that earlier this month Binance was hacked for over 7,000 BTC, then worth over $40 million. The crypto’s price was barely affected by the incident, even though it forced the exchange to temporarily shut down deposits and withdrawals. The market likely barely reacted as the company has a Secure Asset Fund for Users (SAFU) that covered the losses.

At press time, Binance Coin is trading at $33.3 after falling 4.9% in the last 24-hour period. Over the past 30 days, the cryptocurrency is up by 42%.