High Times’ corporate braintrust (from left): President and CEO Kraig Fox and Executive Chairman Adam Levin
In the case of the High Times Holding Corp. initial public offering, what a long, strange trip it’s been.
More than 18 months after High Times started offering shares to buy and sell on the OTC or the Nasdaq, some 23,197 investors who spent an average $655.58 for stock in the money-losing Los Angeles cannabis media and events company remain in limbo with their purchase.
After raising more than $15 million at $11 per share in the IPO thus far, High Times’ executive chairman and former CEO Adam Levin tells CelebStoner the parent company of iconic High Times magazine and the Cannabis Cup events expects to list on the OTC “soon” in a move that will provide a public marketplace for High Tmes shareholders.
“Yes, it’s dragged on longer than we thought,” says Levin, “but we’re in a good position with capital structure, the operating business and our roadmap going forward.”
In April, High Times named Kraig Fox, a former exec at Live Nation, as president and CEO, replacing Levin.
Nasdaq Listing Not Happening for High Times
A stock listing on the more highly regulated Nasdaq market remains on the back burner for now, despite the company’s stated intention to trade on the exchange. The IPO process that launched in March 2018 has been lengthy partly due to a regulatory review of each individual shareholder agreement. With more than 23,000 shareholders and counting, it’s taken time for FINRA, the security industry’s regulatory body, to comb through the offering.
Meanwhile, shareholders may hold private share sales among themselves through the company.
Initially, the High Times IPO had a termination date 30 days after the offer went public. The company has since amended the deadline numerous times. The latest deadline, August 30, was pushed back again.
Anatomy of a Reg A IPO
Filed under Reg A IPO securities law guidelines, the High Times stock listing amounts to a type of crowdfunding sanctioned by America’s top stock market regulator, the U.S. Securities and Exchange Commission (SEC). Reg A offerings are allowed to take up to two years to sell stock under some guidelines and up to three years for others if certain regulatory hurdles are met.
Published: September 05, 2019