High Times Holding Corp., the parent company of cannabis magazine High Times, has delayed its public offering yet again.
The offering deadline was extended until September 30, 2020, as the company continues its pursuit of selling more than 4.5 million shares of common stock.
Despite the delay, the company also announced that it has signed a deal for Sacramento, California-based marijuana delivery service Mountain High Recreation, Inc.
The mostly stock-based transaction was valued at $2.8 million and included only $100,000 in cash. The deal is expected to close before October.
The deal is pending approval from the California Bureau of Cannabis Control, Sacramento, and Hightimes’ senior secured lender, according to a filing.
“There is no assurance that we will be successful in obtaining such approval or otherwise consummating the Mountain High acquisition,” Hightimes said in the filing.
If the deal is approved, Hightimes will trade 245,455 common shares (2.7 million shares following an 11-for-1 split) and pay Mountain High stockholders Chelsea and Kenneth Cordoba as much as $200,000 in royalty payments.
Chelsea and Kenneth will also receive two-year employment contracts that pay $125,000 annually and include options to purchase 385,000 additional shares of Hightimes common stock.
“Chelsea and Ken Cordoba and their Mountain High Team bring years of experience providing high quality cannabis delivery to California and they truly know their customers and how best to please them,” Hightimes CEO Peter Horvath stated.
“Together we are launching High Times delivery in California where we will bring the best assortment of quality cannabis products to your doorstep safe, and fast, with exceptional value.”
“This year our team is expanding to include two important sets of consumer experts – successful local cannabis operators who possess a level of customer intimacy you won’t find in large multi-store operations, paired with accomplished retail professionals who have led and built some of the most successful multi-billion dollar brands in retail,” Horvath said.
“Delivery has always been part of our plan for how you will shop our stores,” Hightimes president Paul Henderson said. “Customers are agnostic about where they complete the transaction.”