Debra BorchardtWhile the embattled High Times Holding Corp. waits for its equally financially impaired lender ExWorks to foreclose, the cannabis media company is being sued for reneging on the sale of a domain name – after being sent payment.
Merlin Kauffman filed a lawsuit in Florida last week for a final default judgment against Trans High Corp. and High Times Holding Corp.
According to the lawsuit, Kauffman sent a text to High Times CEO Adam Levin offering to buy the domain name www.420.com for $307,000. Kauffman said he sent the money to Levin, but then Levin failed to transfer ownership.
In December 2022, High Times agreed to a settlement in which Kauffman would get his money back plus an additional $72,500 to cover his costs.
Delay Tactics
In January 2023, High Times asked for an extension to pay, and in February 2023, the settlement was extended again with a modification to the agreement.
Kauffman agreed to accept High Times stock valued at $55,000 in addition to the money he was to receive. However, by Feb. 21, 2023, neither the money nor the stock had been sent.
Kauffman is asking for $380,000 as a final judgment against High Times for failing to send the money as agreed in the settlement. The court filing also asks that $3,150 be paid by High Times for the mediator.
Green Market Report has covered the financial woes of High Times as the company recently confessed it was in default on its debt. Its lender ExWorks also found itself in financial trouble leading to a receivership. The receiver for ExWorks told High Times that it will foreclose on the company in September of this year since it can’t pay its debt.
Track Record
High Times has been accused by others of delaying agreed-upon payments, most notably the money it agreed to pay to the original High Times owners Trans Holding Corp.
In June 2017, High Times – or rather the company THC – was acquired by Oreva Capital in a deal valued at $70 million, which was roughly five times the company’s revenue. The actual amount paid, however, was $42 million.
Oreva was founded by Levin and is made up of a group of 20 investors. Eleanora Kennedy sued High Times for not making the agreed-upon payments for the company, and in return, High Times attempted to sue Kennedy for not disclosing certain items in the acquisition. High Times quickly dropped its case.
High Times was also sued for not paying the agreed settlement to a woman who sued over handicap accessibility at a High Times event. The settlement kept getting whittled down, and it still looks as if Rena Wyman never received anything.
The company owes $5 million in back rent on a property it inherited as a result of the deal to acquire dispensaries in California.
Numerous subscribers have complained to Green Market Report that High Times has taken their money for subscriptions that have never been delivered. They also complain that there is no customer service department to help them get a refund. High Times was asked about these complaints but did not respond.
The last update with the Securities & Exchange Commission was in December 2022, when the company announced the change of a board member. The company was forced to pause its perpetually renewed stock offering after it failed to update its financial documents for investors. It continued to extend the offering date with the most recent extension being January 2023.
30 comments
Shannon Owen
April 6, 2023 at 7:39 am
HighTimes is a garbage company. They took my money for my subscription and ran with it. I never received a single magazine. It is a profiteering joke. Unfair to the hard working American people who used their hard earned money. I filed a BBB report and the company failed to respond. I will be calling my bank to dispute the charge. Because the magazine takes months to receive, who knows if I’m out of my bank’s jurisdiction to dispute the transaction.
Donald Allyn Mitchell
April 24, 2023 at 4:15 pm
I’m just curious. Is my High Times Stock worth anything? And if so, how do I cash out?
Debra Borchardt
April 24, 2023 at 5:19 pm
This is no market to trade these shares. The company is in default for not paying its debts. The shares are likely worthless, but it will depend on what the receiver can get for the assets.
David Gosiaco
July 21, 2023 at 1:12 pm
I’m also a victim of buying shares with High times and am very frustrated of what’s going on. I have repeatedly contacted them with no results or response. How or what can we do or expect from our investment with High times. Your help and response is greatly appreciated. Mr David G
Allison L
August 22, 2023 at 1:02 pm
Me too. I bought “stock” as well and cannot find anyone to get it back or cash it out. What do we do?
David Moddrelle
November 16, 2023 at 10:17 am
I also bought stock. This is a damn shame.
Sherlon Hosea
May 12, 2023 at 2:56 am
I bought $500.00 worth of shares in 2019.
I have not heard or received any information High Times
Miki Barnes
May 18, 2023 at 8:53 pm
I bought $1500 worth of High Times stock. I can’t get in contact with any customer service concerning the stocks. What is happening?
Debra Borchardt
May 19, 2023 at 8:30 am
The company is in receivership – meaning it couldn’t pay its bills and a lawyer is tasked with recovering some money to pay those debts. This would include selling the company’s assets. You will likely lose your investment as the debt holders are first in line in these situations to recover some money.
Tisha Gonzalez
September 20, 2023 at 7:39 pm
Me too my daughter and I bought the same amount. Something has to be done they benefited from our money.
Rebecca Kyle
June 2, 2023 at 8:18 am
Basically if the company goes belly up we will never see our money. Covid and cancelation of many festivals was part problem. Then legislation for federal release took forever. Then other states were not playing with flowers. In Texas they offer gummies. When and if the company gets back up and overcomes the loss we will be old and surprised. Have faith and try not to hate. I suffer loss in my own business every year.
Debra Borchardt
June 2, 2023 at 8:28 am
Rebecca, HT was in trouble before COVID and was sued by a handicapped person regarding its festivals. HT has never paid the settlement to the handicapped person – that is why they can’t stage any events. The company is already in receivership. Legalization isn’t an issue for the magazine which was founded 40 years ago and has operated for decades without legalization.
JD Elmer
June 30, 2023 at 9:10 pm
Debra you awesome for all your replies! I luckily only lost around 99$ in investing. I invested only as a novelty, luckily. I feel so bad for the honest hard working loyalists that put substantial amounts in a product that believed had some sort of integrity. I framed the certificate that the holding company sent me ( only upon request) it’s next to a photo of a bud that I grew in the 70’s . Kinda yin/yang . I hope all that suffered from this debacle receive positive karma in the future!
Stephen Kunkel
July 24, 2023 at 4:25 pm
Any word of a class action suit against Adam Levin and High Times on behalf of investors? I apparently “donated” $1,100. in exchange for shares in High Times back in 2020. I’ve attempted to contact them numerous times, simply requesting a refund of my investment due to medical bills and financial hardship, only to be rebuffed. If there is an attorney out there willing to take this on , I’m game for 30%.
TOM MURCH
July 25, 2023 at 12:08 am
I would like in on that class action lawsuit also, as it looks like I donated $3,000 to them for stocks back in 2021.
Mark DiSessa
August 17, 2023 at 10:46 pm
Yeah, I’m in for around $2500. Complete bullshit
john
August 15, 2023 at 1:43 am
i was taken as well
david Mddrelle
November 16, 2023 at 10:19 am
I also donated 1000 USD. Put me down if possible
john
August 15, 2023 at 1:45 am
i was taken as well, would like in on that class action lawsuit
Max Samfield
September 2, 2023 at 5:47 pm
I lost $3,000 to this criminal. I’m in on any class action.
MD
September 14, 2023 at 9:19 am
after everything that has happened with this company i feel like this was there scheme all along, to offer stock to take people’s money for themselves. hmm? anyone else feeling this way??
ROBERT A DEJOSEPH
September 15, 2023 at 7:48 pm
Right on.
ROBERT A DEJOSEPH
September 15, 2023 at 7:46 pm
Adam Levin is a fargin bastage. Somebody otta put his bells in a sling.
Ad Ke Ha
September 22, 2023 at 3:51 pm
Lucy Scientific Discovery purchased High Times IP, do we have any rights to their stocks?
Wesley Adams
October 1, 2023 at 12:28 pm
Here with the same question
john d
October 4, 2023 at 6:23 am
it looks like high times rip off billions of shares from everyone including me.
Edward A. Miller
October 5, 2023 at 8:22 am
I am down and out 5500$ or 500 shares of this horseshit Adam Levne Co. I bought 500 shares in 2018 I called and got ahold of Adam Levine in 2019, sounded like he was in a small, echoed room saying, “it’s going to happen soon.” High Times started in 1974, I thought for a company that has been around that long what could happen? Adam Lavine is what happened. I WANT MY PHUCKING MONEY BACK NOW!!! I’m 66, work my ass off all my entire life and am sitting here this morning recovering from Prostate Cancer surgery. with my night wearing piss bag on the floor! Someone smarter than I start legal proceeding on the POS Person & Company PLEASE. Ed Miller
Robert Woodard
October 26, 2023 at 1:41 am
I am a high time investor I purchase $500 worth it in stock. 10/16/2016 & have not been able to get in touch with the company . I like to know what can I do to get them to my Comply to my request. I’d like to know also if I can sell such stock ?
Debra Borchardt
October 26, 2023 at 9:00 am
There is no market to sell the stock. You can complain to the Securities & Exchange Commission.
Darrell Whitley
November 3, 2023 at 10:38 pm
Not as much as other but I invested$110 that was claimed to have doubled lat time I was able to get any information from the webpage that was setup.