VENICE, Calif. – Hightimes Holdings Corporation, parent company of iconic cannabis publication High Times, Chief Executive Officer Stormy Simon reportedly has stepped down after only four months at the company. Simon will be replaced by former Green Growth Brands CEO Peter Horvath.
Formerly president at online retailer Overstock.com before signing on at Hightimes, Simon replaced media executive Kraig Fox, whose tenure at Hightimes Holdings lasted only nine months and ended in December 2019.
The development follows the company’s recent acquisition of thirteen California-based Harvest Health & Recreation retail cannabis dispensaries, in a stock and cash deal valued at $80 million.
High Times has struggled to bring an initial offering to investors on the OTC market, though the company was recently approved for its stock ticker symbol. The approval allows Hightimes Holdings to trade on OTC markets, though as of late February, no date had been announced for trading to commence.
The corporation currently is offering investors a “mini-IPO,” which allows them to sell stock to the public and raise up to $50 million.
“When you have over 25,000 shareholders who have chosen to come along on this ride with you, involving them in a decision that would represent us for the foreseeable future was a no brainer,” former Hightimes Corp. CEO Stormy Simon told tech publication Benzinga, at the time the ticker symbol was approved. “We’re excited, our shareholders are excited, and we’re going to continue to ask for their input as we grow into retail and beyond,”
Financial and trade sites have noted Hightimes Holdings has had considerable difficulties bringing a public offering to market. In December, mgRetailer reported the corporation was struggling under an enormous amount of tax debt.
“Hightimes Holding’s most recent filing with the Securities and Exchange Commission paints a dismal picture of the company’s situation,” mg reported. “For the six-month period ended June 30, 2019, the corporation showed a net operating loss of $11.9 million on revenue of $10.7 million.”
At the time, Hightimes Holdings had recently warned its investors, “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.”
