Marijuana advocacy publication High Times is walking back a previous announcement indicating that it would accept bitcoin when it launches its initial public offering (IPO).
The company said last week that it would accept bitcoin and ether – the cryptocurrency of the ethereum network – as part of its IPO, which seeks to raise as much as $50 million. At the time, according to a press release, CEO Adam Levin said the company was "taking another step into the future, not only as one of the first cannabis-related brands to go public on the Nasdaq but also as the first to allow bitcoin and ether as part of our public capital raise."
However, on August 13, it clarified in a filing with the U.S. Securities and Exchange Commission that this announcement was a mistake, and the company would not actually be accepting bitcoin.
"On August 3, 2018, the Company published a press release relating to its Regulation A+ offering stating that it would accept bitcoin as a form of payment for subscription to the Company's shares," the filing said, adding:
"This press release was distributed in error as the Company will not be accepting bitcoin as payment for shares. As provided in the Company's subscription agreement related to the offering, the Company will only be accepting check, credit card, ACH or wire transfer as payment for subscription to shares."
The filing notably did not mention ether, the other cryptocurrency listed in the press release. High Times did not respond to a CoinDesk request for comment about the omission by press time.
The IPO will remain publicly available through a Regulation A+ exemption, allowing retail investors to purchase High Times' common stock. The sale will close either when the company raises the target $50 million or on September 12, the planned end date.
Marijuana farm image via Shutterstock