In a first for U.S. initial public offerings, the preeminent cannabis brand, High Times Holding Corp., announced that it will become the first traditional stock offering ever to accept investments made in the company through Bitcoin and Ethereum.
Its current equity-crowdfunding process, under Regulation A+, has already begun the process of bringing in cryptocurrencies. Regulation A+ allows the public to invest in private companies. Startups can use a Mini-IPO under Reg A+ to turn their customers into investors.
“Beginning with our Reg. A+ crowdfunding, we’ve been focused on giving everyone from retail investors to long-time fans more ways to own a piece of High Times. While we didn’t believe that the ICO 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.”
“Cryptocurrencies have created a new investor base across the world—we’re just giving them more stable opportunities for investment,” High Times CEO Adam Levin said.
High times has set a price of $11 per share, 10% discount on the estimated strike price of the Nasdaq listing scheduled later this year.
Bitcoin and Ethereum investors are allowed to participate at High Times IPO in addition to traditional fiat in order to enable a much broader group of investors worldwide to take part in the historic launch of the company, as reported by the CEO Levin.
High Times is a New York-based monthly magazine founded in 1974. The publication advocates the legalization of cannabis. The magazine has been involved in the marijuana-using counterculture since its inception.
SEC regulation: new investment limits in crowdfunding
Because of the risks involved with securities-based crowdfunding, you are limited in how much you can invest during any 12-month period in these transactions.
The limitation on how much can be invest depends on the net worth and annual income.If the annual income or the net worth is less than $107,000, then during any 12-month period, can be invest up to the greater of either $2,200 or 5% of the lesser of the annual income or net worth.