Cannabis culture media organization High Times Holding Corp. will accept cryptocurrencies in its Initial Public Offering (IPO), High Times reports[1] Aug. 2. In doing so, it will reportedly be[2] the “first traditional stock offering ever to accept investments” in cryptocurrencies.
The “preeminent source for cannabis information since 1974” will accept Bitcoin[3] (BTC) and Ethereum[4] (ETH) in an effort to cast a wider net in attracting investors to the company. High Times CEO Adam Levin said:
“While we didn’t believe that the ICO [Initial Coin Offering[5]] 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.”
Ahead of the IPO, High Times has filed a Regulation A+[6] report with the U.S.[7] Securities and Exchange Commission (SEC[8]). The report details $29 million dollars of reduction of negative equity, debt reduction, and decreases in operating losses.
Following an SEC rule change in 2015, Regulation A+ allows[9] startups and small companies to “use a ‘mini’ [IPO]” to attract customers to become potential investors. Under the regulation, small businesses can crowdsource up to $50 million from members of the public.
Previous to the rule change, private companies could only seek investment from accredited investors, who are often the smallest and wealthiest portion of the population. Investors will be able to purchase shares in High Times for $11, a price the organization claims is a 10 percent discount on the strike price when it becomes listed on the Nasdaq later this year.
