(This story has been updated to correct the company’s valuation.)
The parent of California-based cannabis culture magazine High Times raised more than $5 million in its effort to go public, but that’s still short of the $17.2 million it needs to be listed on the Nasdaq and far from the $50 million it set out to raise.
High Times Holding extended its fundraising deadline by more than a month to allow for more investment.
Here are the basics:
- With its initial public offering, High Times is offering more than 4.5 million shares of Class A common stock at a price of $11 per share.
- The company has extended its deadline for investing to Oct. 31.
- It claims to have 6,000 investors or supporters to date.
- High Times has said if it doesn’t raise enough to list on the Nasdaq, it will do so on U.S. over-the-counter markets or on Canadian exchanges.
- The company currently has a stated valuation of $225 million – a value “arbitrarily determined by the Company and not based on book value, assets, earnings or any other recognizable standard of value,” according to its SEC filing. A successful raise of the $50 million would place the valuation at $288 million.
- High Times reported $14.5 million in sales in 2017 – down slightly from $14.6 million in 2016, and losses in 2017 amounted to $24.7 million, far more than the $2.9 million in 2016.