The parent of High Times magazine has raised more than $5 million from over 6,000 investors and extended the offer period until the end of October, the company told IPO Edge.
“We have only recently started the process of offering our shares to the public, but to date we have received support and purchases from over 6,000 investors in our community, and we couldn’t be more excited to welcome all of our new shareholders into the fold,” said High Times CEO Adam Levin.
The milestone comes as High Times Holding Corp is raising up to $50 million in a Regulation A+ IPO open to all investors. The company, which also operates the well-known Cannabis Cup events, plans to use the IPO proceeds to invest in growth across both existing and new business platforms.
For instance, until current management took over, the company had neglected to pursue a serious digital strategy. The company’s plans include the recent launch of an over-the-top streaming service that’s akin to a Netflix of cannabis, reflecting a fresh push to monetize the High Times brand – the strongest in the marijuana industry.
“We are producing more events, content, and intellectual property than ever before, and we’re continuing to build out our suite of business tools accessible to, and necessary for, cannabis brands of all sizes from advertising opportunities to IP distribution,” Mr. Levin said.
The $5 million raised so far fulfills a minimum requirement to close the IPO under securities law. Investment bankers say IPO subscriptions under Regulation A+ tend to accelerate just before reaching the end of their offer periods, indicating the total raised may ultimately be significantly more.
The cannabis industry has drawn attention from investors and blue-chip companies in recent months as legalization in more U.S. states creates growth opportunities. Beer company Constellation Brands recently increased its stake in Canopy Growth with a $3.8 billion investment in the Canadian cannabis grower, a deal that surprised investors.
Once public, High Times will join other listed, growth-stage companies focused on the burgeoning cannabis industry. Those include MassRoots, which operates a mobile app for marijuana consumers to share and compare reviews. Another is KushCo Holdings, which offers products to marijuana dispensaries and growers.
IPO Edge recently published a detailed financial analysis of the High Times IPO. One key to the company’s potential is its strong brand name, which is known even among those who don’t currently consume marijuana.
John Jannarone, Editor-in-Chief