This Cannabis Magazine is Going Public Soon

A major cannabis publication is planning to go public soon. This is a clear signal the maturity of the industry, growing away from the prohibition era to head to a wider public acceptance.

According to Reuters today, High Times, a well-known cannabis magazine that started in the 70s, is planning to go public soon in October 2017.  This is a great news for the industry as legalization is happening at a more accelerated rate, and the eco-system for the industry is becoming more maintream and accessible.

High Times recently went through an investment round with Oreva Capital bought a controlling stake in Hight Times for $70 million in June, and subsequently sold the company to Origo Acquisition Corp, a special purpose acquisition company, for $250 million to help take the magazine public.  This is a very Wall Street move that is commonly used to help take company public in a short period of time.  

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"High Times is one of few household names in the cannabis industry," said High Times Chief Executive Adam Levin, who will stay on help run the company post-merger.

Typically to go public, a company needs to spend hundreds of thousands of dollars if not more, and the process is very time-consuming with all the SEC filings, lawyers, accounting and auditing fees (after Enron and the financial crisis, going public is even a greater challenge, cost-wise).  However, there's a fast track for a company to public, which is to be bought out by a company has already been listed publically.  This seems to be the case with High Times and a few other recent IPOs.

We predict to see more IPOs coming for the space when bigger and more mature companies in the industry start to look for more ways to raise capital and expand their reach.