Cannabis culture media firm High Times Holding, which claims to be the “original voice of cannabis,” has recently revealed it won’t be accepting bitcoin, the flagship cryptocurrency, in its initial public offering (IPO).
Earlier this month, as CryptoGlobe covered, High Times published a press release touting it was going to accept bitcoin and ethereum in its IPO, allegedly making it the “first ever” to accept crypto investments.
Now, in a filing with the US Securities and Exchange Commission (SEC), the cannabis brand revealed it won’t accept BTC, and that its announcement was a mistake. 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.
At press time, the press release is still up on High Times’ website. The document doesn’t mention ETH, but the cryptocurrency is, presumably, also not going to be accepted in the IPO. As covered, the firm is selling its shares at $11, with the minimum investment amount being of $99. High Times is looking to go public on the Nasdaq exchange under the “HITM” ticker.
The press release was related to the company’s Regulation A+ (Reg A+) offering, which lets small and early-stage companies access capital in an “alternative to a traditional IPO” that lets them sell shares to the general public. Per Nasdaq, the filing lets businesses raise up to $50 million in a 12-month period from the public.
At the time, High Times CEO Adam Levin claimed cryptocurrencies created a new “investor base across the world,” one the company didn’t want to exclude. He added the firm doesn’t believe in initial coin offerings (ICOs), but 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.”
Curiously, cryptocurrencies have often been pointed to as a solution to one of the cannabis industry’s problems. In the US, while in some states marijuana usage is legal, most banks refuse to offer cannabis-related businesses banking services, forcing them to operate with cash.
This makes them a ripe target for criminals. Cryptocurrencies, given their features, could be a safer and cheaper alternative to the traditional banking system. Potcoin, a cryptocurrency created for the cannabis industry, made headlines this year after NBA star-turned diplomat Dennis Rodman appeared on CNN wearing its merchandise.