The latest in a year full of media acquisitions, High Times acquired all of DOPE’s enterprise including the flagship magazine, multimedia website, events business, and its staff, to further expand its ownership of the cannabis media space.
This acquisition comes ahead of High Times public listing later this quarter, and amid it’s on-going Regulation A+ crowdfunding campaign, which has been reported to be going poorly.
Valued at $11.2 million, the DOPE deal was completed with a split of cash and stock in High Times. DOPE is just the latest of many media acquisitions made by High Times including CULTURE and Green Rush Daily. Out of all three media acquisitions mentioned above, the deal with DOPE may be the smartest one yet.
Localized Distribution and Advertising
Whereas High Times’ magazine has the same advertisements nationwide, DOPE Media offers a unique solution to state-licensed cannabis brands and retailers looking to target their campaigns within their licensed territories.
Based in Seattle, DOPE Magazine currently publishes 8 localized editions across 6 states. The publication offers both national and regional coverage, issuing two versions in both California (North & South) and Washington (East & West), as well as in state-wide versions in Oregon, Nevada, Colorado, and Arizona.
Additionally, DOPE also holds their largest Dope Cup events in Seattle and Portland adding to the existing Cannabis Cup portfolio for the High Times brand.
“What DOPE Media has built in such a short time is not only impressive, but needed considering the difficult landscape and legislation brands are faced with today. We look forward to not only combining our resources but expanding them,” commented Adam Levin, CEO of High Times.
Dope’s Debt to General Cannabis Corp.
Earlier this year, Dope Media Inc. secured a $600,000 10% note from Denver-based General Cannabis Corp. (OTC:CANN) to accelerate its growth strategy. Alongside the note, Dope also issued a warrant to the General Cannabis Corp. to purchase an aggregate of 1,846,187 shares of Dope’s common stock at an exercise price of $0.3278 per share.
While shares of CANN were up just over .5% on the day of the announcement, limited coverage of the deal combined with a 404 page not found error for the Forbes article means this news will need an extra day or so to be priced into the markets.
We’ll be watching shares of CANN closely tomorrow to see how this news affects trading. In the meantime, be sure to subscribe to Cannabis Stock Updates so you never miss an important update.
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