Hightimes Holding Corp., the parent company of High Times Magazine, has agreed to immediately convert approximately $25.6 million of convertible 12 percent Hightimes notes into shares of stock at $11 per share—the same price per share the company’s stock is being offered to the public. As of Tuesday, the company says it’s reduced $28.6 million of existing debt through conversion into stock and warrant exercise, thereby trimming its overall debt burden by more than half.
Additionally, Hightimes Holding’s senior secured lender has agreed that upon completion of the publication’s pending initial public offering, such lender will exercise its warrants and use the exercise price to reduce approximately $3.0 million of Hightimes Holding’s senior secured debt.
“This transaction enables us to simplify our balance sheet and further our business development efforts,” says Adam Levin, Chairman and CEO of High Times. “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. The confidence and support of our shareholders will help us to execute on our vision of becoming a dominant player in the cannabis industry.”
To date, Hightimes Holding Corp has raised more than $13,200,000 from its Regulation A+ public offering,