On 13th August, High Times Holding Corporation has declared that it will not be accepting Bitcoin (BTC) in its IPO as per the filing with Securities and Exchange Commission (SEC). The decision came in as a contradiction to the company’s earlier announcement of accepting cryptocurrency so that it could tap in more investors.
At the start of August, the company stated in a press release that it would accept Bitcoin and Ethereum as a payment from interested investors. High Times filed a Regulation A+ offering which allows small businesses to raise a funding up to $50 million from general public in not more than a period of 12 months.
Although, High Times initial claim of accepting Bitcoin and Ethereum in IPO would make it the “first traditional stock offering ever to accept investments”. In the press release, Adam Levin, the CEO of High Times said, “We’re taking another step into the future, not only as one of the first cannabis-related brands to go public on the Nasdaq but also as the first to allow Bitcoin and Ethereum as part of our public capital raise.”
However, the SEC file states that the declaration was simply a mistake,
“This press release was distributed in error as the Company will not be accepting Bitcoin as payment for shares. As provided in the Company’s subscription agreement related to the offering, the Company will only be accepting check, credit card, ACH or wire transfer as payment for subscription to shares.”
The Securities and Exchange Commission does not refer to any other cryptocurrency especially Ethereum as mentioned in the press release earlier.
Cryptocurrencies have been seen as a mode of payment in the cannabis industry as a resolution to ban by banking industry. The digital tokens are emerging as an alternative to cash payments in the drug.
Bank’s restrictions on payments made through debit and credit cards is opening up new channel for cryptocurrency to make purchases.