Hightimes Holding Corp, the owner of cannabis-focused High Times magazine, disclosed it had reduced $28.6 million of existing debt through a conversion and warrant exercise, trimming its overall debt burden by more than half.
The company also said it has raised $13.2 million from more than 15,000 investors and extended the offer period until the end of January.
The former stockholders of Trans High Corp, a company Hightimes acquired in February 2017, have agreed to immediately convert $25.6 million of convertible 12% notes into shares for $11 per share, the same per share price as the shares in the IPO.
A senior secured lender has also agreed to exercise its warrants and reduce another $3 million of debt.
"This transaction enables us to simplify our balance sheet and further our business development efforts. We are pleased to have the support of some of our largest shareholders as we take this next step in the maturation of our company,” said Hightimes Holding CEO Adam Levin in a statement.
The news comes as Hightimes Holding Corp is raising up to $50 million in a Regulation A+ IPO open to all investors. Reg A+ offerings have less stringent listing requirements and are open to a wider range of investors.
The company, which also operates the well-known Cannabis Cup events, plans to use the IPO proceeds to invest in growth across both existing and new business platforms.
In September, it agreed to acquire DOPE Media for $1.2 million, of which 10,000,420 will be paid in High Times stock and $1,000,000 in cash.
Contact Uttara Choudhury at firstname.lastname@example.org