On Thursday, August 2nd, High Times announced a groundbreaking step as it plans to become the first to accept cryptocurrencies as part of its Initial Public Offering (IPO).
High times is a well-known cannabis culture brand and publication which advocated for the use of cannabis. High Time has announced that during its upcoming IPO, the firm will accept Bitcoin (BTC) and Ethereum (ETH).
High Times prepares for the IPO
Before announcing its IPO, High Times filed for a Regulation A+ report with the U.S. Securities and Exchange Commission (SEC).
According to the report details, the firm announced a $29 million reduction of negative equity, debt reduction, and decreases in operating losses.
Following a change in the SEC rules in 2015, Regulation A+ allows startups and small companies to “use a ‘mini’ [IPO]” to attract customers to become potential investors.
High Times will be leveraging the Regulation A+ which allows small businesses to raise up to $50 million from members of the public through crowdsale.
High Times hopes to set the standard for stable cryptocurrency investments on regulated public exchanges and ushers in a new era of cryptocurrency IPOs.
High Times CEO Adam Levin said about the upcoming IPO:
“High Times has been at the forefront of popular culture for more than four decades. Now we’re taking another step into the future, not only as one of the first cannabis-related brands to go public on the Nasdaq but also as the first to allow Bitcoin and Ethereum as part of our public capital raise.”
Through its joint cryptocurrency and fiat stock offering, the company hopes to expose its historic public launch to a broader group of investors worldwide.
The High Times crowdsale is compliant with SEC Regulation A+ and has already begun taking in cryptocurrency investments from members of the public.
High Times didn’t need an ICO
While Initial Coin Offerings (ICOs) are increasingly becoming the norm for projects looking to enter the crypto industry, CEO of High Times CEO Adam Levin believes it isn’t necessary.
“While we didn’t believe that the ICO [Initial Coin Offering] 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.”
When the crowdsale begins, investors will be able to purchase shares in High Times for about $11, a price the firm claims is at a 10 percent discount on the strike price when High Times becomes listed on the Nasdaq later this year.
As regulations on the use of cannabis in the US and other countries of the world loosens with some legalizing its use, High Times has increased in prominence and popularity.
Given the growth rate of the sector and cryptocurrencies, it will not take long for both to experience exponential growth.
CEO Levin has already stated that the move to accept digital assets is part of the firms’ plan to be at the forefront of popular culture.