High Times Publicly Traded by Fall
On July 27, 2017, Hightimes Holding Corp., the company behind High Times magazine, announced a merger agreement with Origo Acquisition Corporation (NASDAQ:OACQ), a special purpose acquisition company, as a means of making High Times a publicly traded company.
“High Times is one of few household names in the cannabis industry,” said Adam Levin, Chief Executive Officer of High Times, in a press release. “As a leading authority in a rapidly growing and evolving industry, we believe the public market is the best vehicle for capturing and funding substantial market opportunities and championing the innovations emerging across the globe in this industry.”
According to Reuters, “SPACs like Origo have no assets but use IPO proceeds and bank financing to take companies public through acquisitions. High Times expects to list by October on Nasdaq, but it is unclear what the ticker will be … .”
If the merger transaction closes, the deal gives Origo 100% of High Times’ equity and then shareholders in High Times will receive an an aggregate of 23,474,178 common shares of Origo. According to the press release, “At closing and assuming no Origo shareholder redemptions, current shareholders of High Times and Origo will hold approximately 83% and 17%, respectively, of the issued and outstanding shares of the publicly traded company’s common stock.”
The move with Origo to make High Times publicly traded follows the acquisition of High Times this past June by a group of 20 investors, including Oreva Capital, Levin’s investment firm. With Oreva Capital leading the acquisition, Levin became CEO of High Times.