The popular marijuana enthusiast magazine, “High Times,” is en route to take the company plans to take the company public. With a conference helped last week, High Times Holding’s announced their plans to go public given the increasing number of states choosing to legalize the plant for medical and recreational use.
Oreva Capital, a company who in June released the information that it had bought a controlling stake in High Times for a price of around $70 million USD, is selling off the company to an acquisition company named Special Purpose Acquisition Company (SPAC) for $250 million USD.
High Times Chief Executive Adam Levin was quoted stating “High Times is one of few household names in the cannabis industry.” Levin will continue his position as the company transitions.
The acquisition company will use the proceeds from the IPO as well as bank financing to walk companies through the process of going public. SPAC expects that it will be listed by October on NASDAW, but as for the ticker symbol, it is still undecided.
Origo is supposedly taking High Times public in the current situation where eight U.S.states plus Washington, D.C., have legalized the use of recreational marijuana for adults over the age of 21.
Some investors have shied away from investing in the marijuana sector as they are unsure of its legality given the federal legislation. The listing of this company presents an opportunity to legitimize a media company that specifically involves itself in the business of marijuana, helping to find investors willing to make the first jump into a new frontier of business. It will be easier for investors to make the move as High Times does not directly touch the physical plant leading to increased comfortability with investing.
An independent researcher was quoted stating that the market is growing at a 27% annual growth rate with the market being expected to reach $22.6 billion by 2021, which is up from around $6.7 billion in 2016.