A recently launched cannabis exchange-traded fund (ETF) focused on the US has added a C$1 billion company to its list of holdings.

On Monday (May 13), Columbia Care (NEO:CCHWwas included in the Horizons US Marijuana Index ETF (NEO:HMUS), run by Horizons ETFs Management (Canada).

The medical marijuana company made its debut on the NEO Exchange in April, becoming the first company with an enterprise value of over C$1 billion to list on the exchange thanks to a merger with a special purpose acquisition corporation (SPAC).

According to Horizons ETFs, Columbia Care’s C$2 billion valuation makes the company eligible for a maximum weighting of 10 percent in the fund’s portfolio.

Normally, the Horizons US Marijuana Index ETF adds new stocks during a quarterly rebalancing done by Horizons ETFs. However, this addition was done via a “fast entry” rule.

The ETF launched in April, and Steve Hawkins, president and CEO of Horizons ETFs, said in a press release that he anticipates seeing investors gain interest in the US market as the country undergoes regulation changes for cannabis.

As of the Friday (May 10) trading session, Columbia Care was the fourth largest holding for the fund, coming behind Cresco Labs (CSE:CL,OTCQX:CRLBF), Charlotte’s Web (CSE:CWEB,OTCQX:CWBHF) and Curaleaf Holdings (CSE:CURA,OTCQX:CURLF).

Marijuana remains an illegal substance at a federal level in the US, despite legalization programs from several states opening the market to medical or recreational sales.

Columbia Care’s roadmap to its public debut

According to Nicholas Vita, vice chairman and CEO of Columbia Care, the firm is focused on solving “some of the world’s most challenging unmet medical and health needs through the use of our proprietary portfolio of consistently dosed, pharmaceutical-quality cannabis-based medicines.”

Columbia Care reached the NEO Exchange after completing a merger with a public entity created by financial institution Canaccord Genuity (TSX:CF,OTC Pink:CCORF) and designed as a SPAC.

“In this particular case we sold C$40 million of effective blind pool cash into a public vehicle and then we said look, if someone wants to go public they can just merge with our SPAC,” Canaccord’s president and CEO, Dan Daviau, told the Financial Post.

During its Q1 financial results release last Wednesday (May 8), Columbia Care posted revenues of US$12.9 million. The company earned US$39.3 million in revenue during 2018.

Vita said that thanks to its public debut, the company will be able to accelerate its roadmap of operations in the US.

The executive added that the public launch will also aid in the launch of the company’s hemp-derived cannabidiol products into “traditional consumer retail channels.”

SPAC debuts in the cannabis market gain momentum

During the Vancouver edition of the Arcview Investor Forum in April, Jonathan Sandelman, CEO of Cannabis Strategies Acquisition (NEO:CSA.A), said that SPACs are very transparent, which will be a big attraction point for investors.

“Its mission is to be very much like a private equity firm, but with daily liquidity, with the optionality not given to a private equity manager but to the investor,” Sandelman said.

The SPAC executive said his firm has already acquired five marijuana companies in the US.

On Monday, Mercer Park Brand Acquisition (NEO:BRND.U) started trading, adding another cannabis SPAC company to the NEO Exchange’s listings.

The firm raised US$402 million as part of its initial public offering. According to the NEO Exchange, Mercer Park will focus on acquiring companies with a value between US$300 million and US$800 million.

Anna Serin, director of listings development with the Canadian Securities Exchange, told the audience at the Arcview Investor Forum the exchange is getting ready to begin offering SPACs amongst its cannabis listings in the near future.

“With a SPAC, you’re investing in a management team who’s going to go out and acquire assets … in the future,” she said.

Don’t forget to follow us @INN_Cannabis for real-time news updates!

Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.

Centurion to acquire a Disruptive Water-Soluble Cannabinoid Technology Platform Delivering Rapid Onset, Increased Bioavailability, Premium Taste Profiles and Highly Competitive Cost Structure

Centurion Minerals Ltd. (TSXV: CTN) (FSE: XJCB) (“Centurion” or the “Company”) is pleased to announce that it has entered into an Amalgamation Agreement dated February 17, 2021 (the “Agreement”), with HAI Beverages Inc. (“HAI”), whereby Centurion will acquire 100% of the outstanding shares and assets of a wholly-owned subsidiary of HAI (“NewHAI) in exchange for common shares of Centurion (the “Acquisition” or “Transaction”). NewHAI holds all material assets of HAI and the Acquisition will constitute a reverse take-over (“RTO”) of the Company.

Keep reading... Show less

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 its participation in the following investor conferences:

  • Needham 2nd Annual Virtual Cannabis Conference – March 3 rd , 2021 – Management will participate in virtual one-on-one meetings.
  • 33rd Annual Roth Conference – March 15 th -17 th , 2021 – Charlie Bachtell, CEO and Co-Founder, will participate in a Fireside Chat and management will later participate in virtual one-on-one meetings on April 7 th .
  • Stifel Multi-Sector Conference – April 21 st , 2021 – Management will participate in virtual one-on-one meetings.

About Cresco Labs

Keep reading... Show less

Green Thumb Industries, a leading cannabis consumer packaged goods company and owner of Rise™ Dispensaries, is expanding key partnerships and creating scholarships earmarked for those from communities most impacted by the war on drugs as part of its corporate social responsibility program. The scholarships will be granted to a total of four students for programs at the Cleveland School of Cannabis in Ohio and Olive-Harvey College in Illinois. Additionally, Green Thumb will continue its support of Cabrini Green Legal Aid and partner with the North Lawndale Employment Network in Chicago as part of ongoing collaborations that include financial support, volunteerism and awareness initiatives.

Building on the foundation of Green Thumb’s LEAP initiative, which provided pro-bono support for social equity license applicants in Illinois and which will soon offer business incubator resources to newly awarded social equity entrepreneurs, these impactful partnerships mark a critical next step in prioritizing diversity, equity, and inclusion in the cannabis industry.

Keep reading... Show less

All five flavours of the Company’s KOIOS™ nootropic beverage product are now being carried by Jensen’s, a regional supermarket chain operating in the San Diego, Los Angeles, and Palm Springs areas of Southern California. This placement of KOIOS™ follows several other recent placements of the Company’s beverage products in regional supermarket chains across the United States as part of a strategy to passively build market share in specific geographical areas.

Koios Beverage Corp. (CSE: KBEV; OTC: KBEVF) (the “Company” or “Koios”) is pleased to announce that the full range of five flavours of its KOIOS ™ nootropic beverages can now be purchased at all grocery stores operated by Jensen’s Foods (“Jensen’s”), a long-established family-owned grocery chain operating in the San Diego, Los Angeles, and Palm Springs areas of Southern California. In a press release dated February 19, 2021 the Company announced another chain-wide placement of KOIOS ™ nootropic beverages on the west coast of the United States with Market of Choice in Oregon. With this placement of KOIOS ™ in Jensen’s supermarkets, the Company’s beverage products are now carried in approximately 180 retail stores on the west coast, out of a total of more than 4,000 retail stores nationwide.

Keep reading... Show less

 Lobe Sciences Ltd. (CSE: LOBE) (OTC Pink: GTSIF) (“Lobe” or the “Company”) announces that Philip Young, CEO and Director, and Maghsoud Dariani, Chief Science Officer will be presenting on Thursday, February 25th, 2021 at 5:45 pm EST at “The Gold Standard in Psychedelic Investment, Psychedelic Capital Virtual Investment Conference”, a platform showcasing the top companies, latest IPOs, newest opportunities, and deepest industry insights.

As a presenting sponsor, the Company will connect directly with some of the earliest moving investors in the psychedelic industry and reach an audience of 2,000+ investors. Presentations are 30 minutes in length, with 10 minutes allocated to a one-on-one Q&A session with the audience.

Keep reading... Show less