The Fresh Toast report on the open secret that is the slow agonising death of the High Times brand and publishing business.
Here are some key points from their in depth report…
Shockingly, April came and went without an IPO from HighTimes Holding Company. Once again the leaders at High Times teased that the beleaguered shareholders would finally see their shares hit the public markets only to have the day come and go with nothing happening.
The company didn’t issue a press release at the time and Horvath only spoke to Cheddar. No other news outlets had this scoop, but then most of the cannabis media is skeptical of any of High Times claims of going public.
This proclamation of a 420 IPO came as a surprise because the company was essentially shut down with regards to selling its stock according to a story on the Cannabis Law Report. The story reported that because the company hadn’t updated its financial statements since 2019 and the Securities & Exchange Commission (SEC) would not allow the company to sell more shares. Companies are required to provide current financial reports to investors by the SEC. High Times made a big fuss and threatened any reporters who wrote about the issue with legal action, however, the reporting was accurate and the company even noted in its most recent Form U-1 that the offering is pending the updated financial statements.
Horvath and High Times seem to be made for one another. Both talk a big game and fail to deliver. Horvath had previously been the CEO of Green Growth Brands (GGB) which is no longer in business. Horvath had a retailing background with mainstream brands like Victoria’s Secret and DSW. He frequently stated in the early days of GGB that he was going to show cannabis people how “retail is done.” He wasn’t shy at dismissing cannabis dispensary owners as not knowing what they were doing. Of course, many of those same dispensary owners are thriving, while Horvath ran his company into the ground.
While CEO of GGB, Horvath consistently made business arrangements using GGB stock as payment, like paying for retail consultants. That stock is now worthless. High Times has also made numerous deals in which CEO Adam Levin has paid with High Times stock. Stock that still isn’t tradable and was originally sold at $10 a share. High Times has lately valued the stock at just $1 a share in certain business agreements.
Horvath is High Times’ third CEO in as many years and many believe he is not an acting CEO. For example, the documents for any recent deals announced by High Times are signed by Chairman Adam Levin, not Horvath.
And the kicker
When the company releases these statements, investors might not like what they see. It is expected that the debt is enormous. The company has begun shifting its lucrative assets to a separate subsidiary and no one knows whether the original High Times Holding Company shareholders will have any claims on those assets. High Times said it so far has raised $35 million from more than 30,000 shareholders.