High Times: the American newspaper that made history is still for sale

High Times, the iconic American cannabis culture publication, is at a critical juncture on its 50th anniversary.

Once a pioneer in the industry, High Times finds itself today in bankruptcy proceedings, with its assets being put up for sale to settle mounting debts.

A rich history

Founded in 1974 by Tom Forcade, High Times quickly became the voice of cannabis counterculture. Over the decades, the company has expanded beyond its flagship magazine to include Dope Magazine, Culture Magazine, and well-known events such as the High Times Cannabis Cup and the Chalice Cup. These initiatives have allowed High Times to become not just a publication, but also a cornerstone of cannabis culture, promoting legalization and the cannabis lifestyle.

However, the magazine's expansion was not limited to publications and events. It ventured into retail, acquiring dispensary licenses and further establishing itself in the cannabis industry. This diversification aimed to capture a larger market and stabilize its revenue streams.

Financial difficulties and ownership changes

The seeds of the current status of High Times sown in 2017 when Adam Levin's Hightimes Holding Corp acquiring the brand for $70 million from Trans-High Corporation (THC). Levin's vision was ambitious, involving a public listing on NASDAQ to attract further investment. Unfortunately, this plan encountered significant obstacles, primarily due to the nature of the cannabis-related events the company organized.

Mr. Levin's strategy to increase revenue included a series of acquisitions, focusing on event companies and dispensary licenses from the Have a Heart group in California. However, many of these operations did not materialize, forcing the company to continuously sell shares to finance other acquisitions. This cycle of debt and acquisition ultimately led to severe financial instability.

Legal problems and sequestration

Financial difficulties reached their peak last year when Adam Levin was accused of fraud by the Securities and Exchange Commission (SEC) for failing to disclose paid promotions related to the company's stock offerings. As a result, Levin was barred from serving on the board of directors for three years, and High Times was fined nearly $700,000 in penalties. This legal quagmire further eroded investor confidence and exacerbated the company's financial difficulties.

Following these difficulties, High Times was placed in receivership by the court. Greenlife Business Group was tasked with handling the sale of the brand's assets and set a deadline for bids of May 17th. All assets not bid on by this date will be auctioned off. The main assets for sale include the intellectual property, brand, domain names, and URLs for High Times, Dope Magazine, and Culture Magazine, as well as the Cannabis Cup and Chalice Cup event brands.

To date, the only asset to receive an offer is the 420.com brand, which is expected to be sold for around $100,000, whereas it was initially purchased for over $300,000. According to Greenlife's CEO, the entire media property could fetch approximately $7 million, a fraction of their previous value.

High Times' current state is a stark reminder of the volatility of the cannabis industry. The timing is particularly unfortunate as the magazine celebrates its 50th anniversary, a milestone that should normally be cause for celebration. Instead, it finds itself grappling with the potential disintegration of its once formidable media empire.

The High Times website is currently offline.