High Times No Longer Accepting Bitcoin and Crypto For Its IPO

High Times Holding has indicated that it is not going to accept Bitcoin (BTC) during its initial public offering (IPO), latest information shows.

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High Times Holding has indicated that it is not going to accept Bitcoin (BTC) during its initial public offering (IPO), latest information shows.

The Marijuana group’s action has been revealed in their document filing presented to the U.S. Securities and Exchange Commission (SEC) on August 13.

The decision not to accept BTC comes as a contradiction to what the company stated on August 3.

In that announcement, it had stated that it would be accepting crypto assets as a way of attracting more investors for its initial public offering (IPO) scheduled for the end of the year.

At that time, High Times released a presser seemingly conclusive that it would accept both Bitcoin (BTC) and Ethereum (ETH) as payment methods for those wishing to subscribe for shares from the company.

SEC’s clarification

As part of the process towards conducting the IPO, High Times registered for a Regulation A+ offering. The benefit of this filing is that it allows smaller businesses to participate in raising up to $50 million.

The business can raise these funds from the general public in a period, not more than 12 months.

Even though High Times had previously pointed out that it would be accepting the two cryptocurrencies, the SEC filing reveals that that’s not the case and that the announcement was mistaken.

It now means that at the conclusion of the IPO, High Times won’t be classified as the very first traditional stock to conduct an IPO and accept contributions from investors in digital currencies.

According to the SEC, “[this] press release was distributed in error”. It goes on to state that “the Company will not be accepting Bitcoin as payment for shares.”

The documents with SEC also indicate that the IPO will be conducted as provided in High Times’ subscription agreement. These documents show that the company/ group will only accept credit cards, check, ACH or bank wire transfer.

According to the regulatory agency, the above constitute the methods of payment the company will consider when handling subscriptions for its shares.

Interestingly, documents by the commission do not refer to ETH, the other cryptocurrency that was announced as a payment method.

Cryptocurrencies in the Marijuana industry

Many companies and start-ups in the cannabis industry look to crypto as the best problems brought about by banking bans.

Cannabis is still largely illegal in most countries and states, and crypto provides alternative to fiat that helps bypass banking needs.

The continued unwillingness by major banks to accept payments related to marijuana excludes users from using credit or debit cards when making purchases.

This scenario leads to the use of cash, with loads of it kept at the stores.  The end result is it that marijuana dispensaries become targets of robbers.

To make create an enabling environment, some cryptocurrencies like Dash have entered partnerships that make it possible to purchase the drug in crypto.

The decision by High Times Holding Corp. may be related to its IPO only, but it illustrates the challenges facing crypto adoption. However, there is a likelihood cryptocurrency will play a leading role in the marijuana industry.

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