It’s time for your Daily Hit of cannabis financial news for July 9, 2020.
On the Site
The Cannabis Law report has confirmed from HighTimes Holding Corp. lawyer Stephen Weiss and Megan Penick of L.A. based Michelman Robinson LLP that the Securities & Exchange Commission (SEC) has halted sales of shares in the company. The story as reported by Teri Buhl states that the reason the sales were stopped is the company hasn’t filed its annual report.
The last time the company filed official annual earnings was June 2019. High Times had told investors it would get updated financial information on June 12, but that did not happen. The company has extended the offering of shares for two years, initially telling investors that it would list its shares on the NASDAQ. Then it lowered those expectations to the Over-The-Counter Marketplace. Still, it hasn’t happened.
What has happened is that the company continually announces acquisitions and tells investors how much money the new acquisition will bring in. Then months later, the deal typically quietly goes away. Sometimes announced in an SEC filing and sometimes just through a press release. In some cases, the acquisitions just never close and stay in a suspended state waiting for the shares to go public as payment for the acquisition.