Popular marijuana-positive magazine High Times has announced it will be accepting investment via cryptocurrency in its upcoming initial public offering (IPO).
Initial public offerings are similar to initial coin offerings (ICO) used by blockchain startups to raise funds for projects but for traditional currency investment.
This is reportedly the first time a company has accepted cryptocurrency in an IPO. Bitcoin (BTC) and Ethereum (ETH) will be the only cryptocurrencies accepted.
Regulation A+ Benefits
High Times has filed for a Regulation A+ report with the U.S. Securities and Exchange Commission (SEC) in order to register the IPO. Regulation A+ is a new rule change implemented by the SEC in 2015 that makes it easier for small businesses to attract investment. With the Regulation A+ IPO, High Times will be able to fundraise up to $50 million in investments.
CEO of High Times, Adam Levin, stated that the company didn’t believe an ICO was the right choice for it but also didn’t want to exclude cryptocurrency investment in the offering. He sees High Times as a frontrunner in global pop-culture and believes that cryptocurrency plays a large part in the market.
Following the SEC rule change, private organizations can now accept investment from a much larger section of the general public rather than just accredited investors such as venture capitalists.
Initial investors in the IPO will be able to benefit from a 10 percent price reduction on shares before High Times gets listed on Nasdaq later this year for approximately $12 a share. The company will be the first marijuana-related business to be listed publically on the Nasdaq platform.
Banking Woes for Cannabis Businesses
Despite a number of states in the U.S. legalizing marijuana in recent years, federal banks have been resistant to offer services to cannabis-related businesses. Large amounts of marijuana outlets have only been able to accept cash for many years now, making them susceptible to crime and other related issues.
The cryptocurrency Dash has been working towards resolving these issues by integrating DASH payments in point of sale machines at marijuana dispensaries.
Earlier this year marijuana-positive cryptocurrency Potcoin (POT) sponsored Dennis Rodman on a trip to the South Korean meeting between President Donald Trump and Kim-jong Un
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