Just this morning, High Times Holding Corp. announced its merger with NASDAQ-listed, blank-check company, Origo Acquisition Corporation (NASDAQ:OACQ). This transaction will result in High Times trading publicly!
Related: What Are Blank Check Companies and Why Should I Care?
High Times Holdings needs no introduction. When you've been publishing HIGH TIMES Magazine since 1974, you are pretty much already a household name. The company's Chief Executive Officer, Adam Levin said so himself:
"High Times is one of few household names in the cannabis industry. We believe that the barriers to entry are substantial, given the respect and trust associated with our brand that comes from informing and entertaining people for over 40 years. 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.”
We have to agree with Mr. Levin on this one.
Related: The Ron English X High Times Popaganja Pop Up Shop is Awesome
Now, let’s dive into the details of the transaction...
Origo will acquire 100% of the equity of High Times in exchange for 23,474,178 newly-issued shares of Origo. Upon closing of the transaction, current High Times and Origio shareholders will own approximately 83% and 17% respectively of the resulting company's shares.
Two current members of Origo's board of directors (or their designees) will join the board of the resulting company.
High Times' management team will continue to run the company following the completion of the merger.
We've all known High Times as a brand for so long, so now let's take a step back and look at the company from a business/investment standpoint...
According to the 8-K, High Times believes that their historical undercapitalization precluded the company from taking advantage of opportunities in cannabis-related digital media. They believe that this merger will improve the company's balance sheet and provide capital to invest in growth opportunities that they previously had to pass up.
High Times operates through three primary segments (the company expects each of them to contribute to revenue growth in 2017):
Events: High Times hosts their signature Cannabis Cup events (as well as other cannabis focused festivals and tradeshows) in jurisdictions across the U.S. where cannabis is legal. With expanded legalization of cannabis and increased access to capital the company is planning more and larger-scale events in new and existing regions.
Licensing: When you have a brand as well-known as High Times, licensing opportunities become prevalent. The company is currently seeking additional licensing opportunities in the area of media (outside of the traditional media space that High Times operates in), clothing, and cannabis-related accessories.
Media: High Times generates print media revenue through sales of HIGH TIMES Magazine as well as sales of print advertising. The company also has "developed an in-depth digital media strategy" that consists of an online magazine, e-commerce platforms, social media engagement and video content.
Other Ways To Play
In case you just can’t wait to get your very own piece of High Times, two other companies that are already trading publicly, MassRoots (OTC:MSRT) and Stony Hill Corp. (OTC:STNY) have small stakes in High Times Holdings. They both stand to benefit from the increased liquidity associated with High Times trading publicly.
Related: Damian Marley's Stony Hill Invests in High Times
As High Times gets closer to their first day of trading publicly, we'll be sure to keep readers posted regarding any developments. Be sure to subscribe to one or more of The Daily Marijuana Observers' free email newsletters so you never miss an important update regarding High Times or the cannabis industry more broadly.
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