While 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.
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.
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.