CANNABIS MEDIA MELTDOWN
PHOTO BY ALEX HALPERIN
High Times may have to cease operations due to lack of funds, the N.Y. Post reports. “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,” parent company Hightimes Holding said in a recent SEC filing.
- High Times, which began 45-years ago, has struggled to adapt to legalization. It acquired media brands Dope, Culture and Green Rush Daily, but a crowd-funded IPO fell short of expectations. There have also been problems with its signature Cannabis Cup events.
Cannifornian - In its most recent earnings statement, High Times reported a net loss of $11.9M on $10.7M in revenue for the six months ending June 30, 2019.
- High Times reportedly has $105.2M in debts.
It’s not the only cannabis media company in a difficult position.
- Canadian lifestyle publication Civilized suspended operations and “temporarily” laid off all its staff. It’s being acquired by New Frontier Data which says it will relaunch the media brand in January. Civilized has reportedly run through $10M in investment capital. ????WW Canada has more.
Washington (D.C.) Business Journal
Meanwhile, Isaac Dietrich, CEO of once high-flying social media startup MassRoots, insists the company is in business, despite reports to the contrary.
MJBiz
- MassRoots has also burned through millions in capital. Last week its stock was trading at about one third of a cent. At press time its web site was down.
Quick Hit
- A tough story in Grizzle calls MedMen‘s stock, “Nothing more than a speculative trading vehicle from now until the company runs out of money.” Equity Guru spots “5 Red Flags everyone should have seen” at the multi-state operator.
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