High Times delays cannabis stock offering, awaiting filing of audited financials

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Bethan Rose Jenkins, Cannabis News Writer/Editorial

One of the cannabis industry’s most acknowledged and trusted brands, Hightimes Holding Corp., has confirmed that it must wait until the company’s 2019 audited financials are filed until it can close on its small-investor Regulation A initial public offering (IPO).

The company, which is renowned for its monthly cannabis-focused magazine and popular events/trade shows, is attempting to transition into brand licensing and retail. Headquartered in Los Angeles, High Times objected to recent reports claiming that its IPO had been “halted” by the U.S. Securities and Exchange Commission.

“High Times was delayed in its public filing (of its audited financials for 2019) and as a result cannot close on any Reg A investments until its financials are filed,” said the company’s executive chair Adam Levin. “The company has followed SEC protocol and believes the recent media articles surrounding the Reg A has been misleading and inflammatory.”

High Times IPO: Understanding Reg A offerings 

Levin informed existing and potential investors about High Times’ Reg A offering during a recent investor call. Back in 2015, the SEC approved “Regulation A+” — a rule exempting specific securities offerings from registration. The purpose of this rule was to boost opportunities for U.S. and Canadian companies/startups hoping to raise capital. 

Thanks to Reg A+ offerings, companies can seek out capital funds from accredited and unaccredited investors; thus broadening exposure. When discussing the topic, Levin spoke of a number of false reports that claimed High Times has illegally carried on soliciting investments. He did not, however, explain the reason(s) why 2019 audited financials have been delayed.

The investor call also saw company officials delve into the topic of High Times’ newly announced agreement to purchase a cannabis delivery service called Mountain High Recreation.

High Times flagship property is for sale

In separate news that has emerged at the same time as High Times’ delaying of 2019 audited financials, the acclaimed cannabis company has put its San Francisco property on the market — a property that was dubbed the flagship store of a dispensary deal with Harvest Health & Recreation. 

“We’re working with all the stakeholders to move forward on these opportunities,” said a spokesperson for Thor Equities. This property development, leasing and management firm confirmed the San Francisco store’s advertising on the real estate market. 

Much like with the delaying of its 2019 audited financials, Levin did not provide any clarity as to why the property will be leased out. However, Alexis Bronson – the CEO and co-owner of a store featured in the Harvest Health transaction who claimed the sale was illegal – says that the license application can be transferred to a new location, so long as it receives approval from the director of the San Francisco Office of Cannabis. 

Bronson is named as a 40 percent owner of the entity in Hightimes Holdings Corp.’s security filing.