Bad Trip: Pot Company High Times Backtracks on Accepting Bitcoin in IPO

High Times Holding Corp, a New York-based media group advocating for cannabis usage, has decided against accepting bitcoin in its initial public offering (IPO), according to a filing with the Securities and Exchange Commission (SEC) dated Aug. 13.

The SEC filing states that the initial announcement made two weeks ago, in which the company had said it would accept cryptocurrencies for its IPO, was “distributed in error.”

At the beginning of August, CCN reported that High Times was accepting cryptocurrency for its IPO — which it claimed would have made it the first stock offering ever to accept investments in digital assets.

According to the report, the offering was compliant with SEC Regulation A+ — a framework which allows small businesses raise up to $50 million of funding — and it also stated that the company had begun receiving cryptocurrency investments.

At the time, High Times CEO Adam Levin had said the company was “taking another step into the future” by making it possible for investors who own cryptocurrencies such as bitcoin and ethereum to be part of the “public capital raise.” Levin went further to describe cryptocurrency as the currency of the future that has “created a new investor base across the world.”

The Aug. 13 filing with the SEC runs contrary to the announcement made two weeks ago. The company has now rescinded its statement about accepting bitcoin as a form of payment from investors for stock in the company.

The new filing reads, “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.”

While the recent filing doesn’t reference ethereum, which was mentioned in the initial announcement, it is safe to assume they won’t be accepting that asset either.

Cryptocurrencies are seen by many as an alternative to cannabis-related payment issues that makes it difficult for customers to make purchases with their credit or debit cards. The industry suffers from hostility from the banks and has become a target for thieves due to the large amount of cash kept on site.