Most enthusiasts would agree High Times and Dope Magazine are the best-known brands in the
cannabis-focused media landscape.
What Happened
In the latest move toward consolidation in the industry, High Times announced Wednesday it has acquired DOPE Media in a split of
cash and stock transaction valued at $11.2 million.
This acquisition follows those of CULTURE and Green Rush Daily, and comes amid the parent company’s ongoing Regulation A+
crowdfunding campaign, intended to raise funds for a public listing later this quarter.
Why It's Important
"The acquisition of Dope Media will be a key building block as we continue on our mission to create brand-safe inventory for
brands of all sizes," High Times CEO Adam Levin told Benzinga. "The acquisition specifically allows us to offer better localized
offerings (which is hugely important for the growth of our industry, still stifled due to restrictive legislation and the outdated
federal marijuana ban.”
Beyond Dope’s strong brand name, High Times is acquiring Dope’s magazine, website, events business and staff. This includes CEO
George Jage, the former president of Marijuana Business Daily, a company he says he helped grow more than 3,000 percent in under
three years.
“This is a smart trade on both sides of the table,” Jage said. “It is a big win for Dope to be able to tap into the reach and
resources of High Times as the largest cannabis media company in the world.”
Drake Sutton-Shearer, CEO and founder of Prohbtd, another cannabis-focused media company, said that “as the cannabis industry
undergoes consolidation, media properties will be a part of that trend. Now that High Times has a consumer magazine portfolio of
cannabis brands, it will be interesting to see how that translates to future digital revenue.”
What's Next
Last week, High Times announced it had cleared escrow on $5 million raised from more than 6,000 new investors. The brand also
decided to extend the deadline for investing in the offering, and it's now open as late as Oct. 31 ahead of its intended public
listing this year.
It should be noted some investors, analysts and the company itself have warned about the elevated risk investing in High Times’
RegA+ raise implies. An SEC filing reads: “This investment is suitable only for persons who can bear the economic risk for an
indefinite period of time and who can afford to lose their entire investment. Furthermore, investors must understand that such
investment is illiquid and is expected to continue to be illiquid for an indefinite period of time. No public market exists for the
securities.”
Levin remains optimistic.
"We couldn't be more proud of our growth and success over this past year-and-a-half, but receiving this level of acknowledgement
and support from the community doubles down on our belief that we're moving in the right direction and that the community is behind
us," he said last week.
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Photo by Javier Hasse.
© 2018 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.