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.
8 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.
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.
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.