Contrary to earlier reports, High Times Holding Corp. will refuse offers in BTC during its initial public offering (IPO), according to documents filed with the U.S. Securities and Exchange Commission this week.
The company, which operates media brands in the marijuana space, made the announcement in contrast to its earlier stated position, which suggested cryptocurrencies would be accepted during the listing.
At the start of this month, High Times suggested it would be prepared to accept payment in ETH and BTC in exchange for shares in the company. The company filed a Regulation A+ offering, which allows them to raise as much as $50 million from casual investors within 12 months of the listing.
Their initial claims celebrated that High Times would become the first IPO ever to accept payment in cryptocurrency. However, according to the filing documentation, this prior announcement was described as an ‘error’.
“This press release was distributed in error as the Company will not be accepting [BTC] 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,” High Times said in its SEC filing.
While the filing was keen to distance High Times from the failing BTC token, the document drew no reference to the role ETH would play in the IPO, if any. However, it is expected that the firm will no longer support payments in ETH as part of the listing.
Cryptocurrencies are viewed as a potential solution for businesses in the marijuana industry, many of whom operate between confliction state and federal legal positions. This can result in difficulties accessing mainstream banking services, which effectively mean customers often can’t pay by credit or debit cards.
This position has also made cannabis dispensaries a target for thieves, due to large amounts of cash transactions being conducted on the premises. As a result, cryptocurrencies like Bitcoin BCH have been finding increasing favor amongst merchants, including within the marijuana space.
The decision of High Times to snub the BTC token shows that while crypto could hold the answers for the industry, the inherent weaknesses of BTC mean it’s become an unattractive proposition for merchants.
The High Times IPO will take place later this year.
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