Adam Levin, founder and chairman of Hightimes Holding Corp.—the parent company of High Times magazine—has agreed to plead guilty to conspiracy charges involving undisclosed payments to a stock analyst. According to the U.S. Department of Justice, Levin participated in a scheme to pay over $150,000 to an investment newsletter analyst who promoted Hightimes’ stock without disclosing the compensation.
The plea agreement, filed on December 20, 2024, outlines that these undisclosed payments were intended to boost investor interest in Hightimes’ securities offering. The analyst’s promotions, lacking transparency about the financial arrangement, contributed to Hightimes raising at least $6 million from investors.
Levin is scheduled to appear in United States District Court in Los Angeles on January 17, 2025, to formally enter his guilty plea. The charge of conspiracy to tout securities for undisclosed compensation carries a statutory maximum sentence of five years in federal prison.
Levin’s guilty plea adds to a series of challenges faced by Hightimes Holding Corp. in recent years, including accusations of fraud, CEO resignations, and an eventual collapse of the business — culminating last year, when the company entered receivership after failing to meet its financial obligations.
Hightimes Holding Corp. acquired High Times magazine in 2017. The acquisition was part of a $70 million deal by a group of investors led by Adam Levin, the founder of Oreva Capital. The purchase included the magazine, its intellectual property, and its events business, such as the Cannabis Cup. According to public statements at the time, the acquisition aimed to transform High Times into a broader media, lifestyle, and events company while capitalizing on the growing cannabis industry’s potential.
In 2018, Hightimes Holding Corp. initiated a Regulation A (Reg A) public offering, allowing non-institutional investors to purchase shares directly. This fundraising strategy aimed to generate up to $50 million to support the company’s expansion plans, including acquisitions and a potential public listing. However, by June 2019, the company had raised only $15 million, falling short of its goal. Additionally, in July 2020, the U.S. Securities and Exchange Commission ordered a halt to the High Times IPO after the company missed its annual report deadline.
During this period, Hightimes Holding Corp. aggressively pursued several acquisitions. In September 2018, the company acquired a handful of cannabis industry publications, including Seattle-based cannabis journal DOPE Magazine (not to be confused with the art publication by the same name), aiming to expand its reach within the cannabis culture and lifestyle sector. However, by October 2019, High Times laid off the majority of DOPE Magazine’s editorial team in Seattle and consolidated operations to its Los Angeles headquarters until the publication stopped posting altogether in 2021.
Hightimes Holding Corp. has not issued a public statement regarding Levin’s plea agreement at this time. The investigation was conducted by the Federal Bureau of Investigation and the U.S. Securities and Exchange Commission. For more information, refer to the official press release from the U.S. Department of Justice.
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