By Emily Ledger
The oldest Cannabis publication in the world – High Times – could be facing an end to operations, following recurring losses. Owner of the 45-year-old publication, Hightimes Holdings, recorded losses and debts on the magazine throughout 2019.
Hightimes Holdings has warned shareholders that publication of the magazine may have to come to an end due to debts and lack of profits. The magazine incurred net losses of $11.9 million for the six months ending 30th June 2019 on revenue of $10.7 million.
In a statement, High Times said:
“Because of recurring operating losses, net operating cash flow deficits, and an accumulated deficit, there is substantial doubt about the company’s ability to continue as a going concern for one year from the issuance of the financial statements”.
Over the last two years, High Times purchased a number of rival publications, including Dope, Culture, and Green Rush Daily. Despite the acquisitions, High Times magazine continued to make losses. According to Marketwatch, the company is currently over $105 million in debt.
Culture magazine announced that it would be suing High Times, as they allege a failure to be paid the $4 million purchase price. Adding to the controversy, Dope magazine also faced significant staff lay-offs after the High Times purchase.
12 staff were laid off soon after the acquisition, before the Seattle headquarters in October 2018, leading to 11 more lay-offs. Dope magazine was moved to Los Angeles, where only three staff were offered jobs.
In March 2018, High Times announced plans to begin trading on Nasdaq, with 23,000 investors contributing $15 million. However, the company is yet to be listed, due to a lack of cash. In order to begin trading on Nasdaq, the company needs to have $4 million in stockholder equity.
Losses, debts, and failed acquisitions are leading many to predict an end to the longes-established Cannabis publication in the world. Despite the situation, however, the owner of the magazine is apparently maintaining goals to build a multi-billion dollar Cannabis empire.
Adam Levin claimed in an interview with InsideHook:
“You can quote me when I say that we’re building a billion-dollar brand here”.