It wasn’t that long ago that the possibility of a cannabis ETF was purely speculation. Now, it’s a reality.
On Wednesday (April 5), Horizons ETF Management officially announced the launch of the world’s first marijuana ETF on the Toronto Stock Exchange, Horizons Medical Marijuana Life Sciences (TSX:HMMJ).
As noted by the press release, the ETF is the first of its kind to offer exposure to Canadian and American-listed stocks involved with medical marijuana bioengineering and production.
“Canada is the birthplace of ETFs and has been home to many firsts in the industry. The Horizons Medical Marijuana Life Sciences ETF is another made-in-Canada ETF milestone, the world’s first marijuana ETF,” Steve Hawkins, President and Co-CEO of Horizons ETFs said in the press release. “At Horizons, we take pride in our innovation, so we’re very happy that for the first time, investors will be able to access a low-cost, diversified portfolio of companies that are directly involved in the rapidly growing medical marijuana industry.”
While the launch of the first ever cannabis etf is indeed exciting, it certainly doesn’t come without regulations: companies must meet minimum asset and liquidity thresholds to be considered. Following that, stocks are then readjusted on a quarterly and market-capitalization basis so they can’t exceed more than 10 percent of the index.
In describing potential investors who may be interested in the fund, Hawkins outlined them as “somebody who’s interested investing into the marijuana industry [and] believes that there’s a growth story with the marijuana industry.”
Still, he cautioned that investors may feel uncertain about volatility surrounding Canadian cannabis stocks.
“If you’re invested in one company, you’re taking a lot more individual risk from an investor perspective,” Hawkins told CBC.
On that note, to start off 14 marijuana stocks will be included in the fund, namely:
- Canopy Growth (TSX:WEED), whose shares have increased 0.7 percent to $10.13 over a one-day period;
- Aurora Cannabis (TSXV:ACB), shares of which have moved 3.08 percent since Wednesday’s announcement to $2.69;
- Aphria (TSX:APH), whose stocks has seen a 2.22 percent increase to $7.41
- Emblem (TSXV:EMC), whose shares have seen increase of 3.23 percent to $2.24 since Wednesday; and
- CanniMed Thereapeutics (TSX:CMED), shares of which have risen 1.75 percent since Wednesday to $12.24.
Similarly, the new ETF exchange itself has performed well since officially opening, rising 2.96 percent to 10.43 points as of 2:24 p.m EST on Thursday.
Don’t forget to follow us @INN_Resource for real-time news updates.
Securities Disclosure: I, Jocelyn Aspa, hold no direct investment interest in any company mentioned in this article.
Some pretty important news out of health and wellness; beverage and natural products company BevCanna Enterprises Inc. (CSE:BEV, Q:BVNNF, FSE:7BC) this week. For those of you following the Company with us, stay tuned.
As investors continue to prioritize cannabis opportunities in the US, market watchers expect mergers and acquisitions (M&A) to play a role in the future for Canadian companies.
A consolidation trend has been expected in the Canadian cannabis space for some time now based on the size of the market compared to the number of operations in the country.
BioHarvest Sciences Inc. Unveils the Unique Polyphenolic Content of Its Upcoming Olive-Based Nutraceutical
The product will include polyphenols known to have significant health benefits.
BioHarvest Sciences Inc. (CSE: BHSC) (“BioHarvest” or the “Company”) has reached an important milestone in its development program of additional Nutraceuticals. The olive-based Nutraceutical product scheduled for market availability in the second half of 2022 will contain the following unique matrix of polyphenols: hydroxytyrosol, trosol, and verbascoside. These compounds are the major polyphenols in naturally grown olives and are responsible for the high antioxidant activity of olives and olive oil. Importantly, the BioHarvest olive-based Nutraceutical product will provide all the benefits of olives and olive oil with a low calorie count per serving.
Cresco Labs (CSE:CL) (OTCQX:CRLBF) (“Cresco” or the “Company”), one of the largest vertically integrated multistate cannabis operators in the United States, announced today that it will report financial results for the fourth quarter and full year ended December 31 st , 2020 on Thursday March 25 th , 2021 before the market opens.
The Company will host a conference call and webcast to discuss its financial results and provide investors with key business highlights on Thursday March 25 th , 2021 at 8:30am Eastern Time (7:30am Central Time).
Canopy Growth to Participate in BofA Securities Virtual Consumer & Retail Technology Conference on March 11, 2021
Canopy Growth Corporation (TSX: WEED) (NASDAQ: CGC) (“Canopy Growth” or “the Corporation”) announced today that EVP & CFO Mike Lee will be participating in a fireside chat at the BofA Securities Virtual Consumer & Retail Technology Conference on Thursday, March 11, 2021 at 9:30am ET .