Investors gain another entry to marijuana investing thanks to the launch of a new actively managed fund.

Foothill Capital Management announced the launch of its a new open-end mutual fund, the “Cannabis Growth Fund” (CANNX), on Tuesday (February 26).


Eric Banhazl, chairman of Foothill Capital Management, said the firm sees cannabis as still in its infancy stage, but that its potential growth makes it worthwhile to open this fund.

The fund will be managed by Korey Bauer, a managing director with the firm. Since 2015 Bauer has been co-managing the All Terrain Opportunity Fund (TERIX).

“We believe active management is critical when investing in an industry that has frequent and evolving developments in regulation, applications and acquisition activity.”

The fund from the Arizona-based firm will charge a 0.85 percent fee for management services.

According to the prospectus for the new fund, the core investment strategies will hone in eight specific business types:

  • Agriculture technology
  • Ancillary products and services
  • Biotechnology
  • Cannabis products and extracts
  • Consulting services
  • Consumption devices
  • Cultivation and retail
  • Industrial hemp

Investors can expect this fund to pursue operations all across the globe where cannabis is legal. The fund will open the door to US companies by allowing state laws to determine whether or not a business is legal.

“It is anticipated that a large number of holdings within the Fund’s portfolio will be securities of Canadian companies,” the prospectus for the Cannabis Growth Fund indicated.

Active management shows benefits for other funds

Canadian financial institution Purpose Investments announced its marijuana fund, the Purpose Marijuana Opportunities Fund (NEO:MJJ), had seen a return of 53.43 percent over a one-year-period thanks to its portfolio manager.

“Passive investing in a new industry, such as marijuana, often means chasing or missing opportunities because the indexes are rebalancing much more slowly than the market itself is moving,” Greg Taylor, chief investment officer of Purpose Investments and portfolio manager of the fund said.

Fellow actively managed Canadian fund, the Evolve Marijuana ETF (TSX:SEED), has increased in value 41.77 percent over a year-to-date period.

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.

CanBud Distribution Corporation (CSE: CBDX) (FSE: CD0) (“CanBud” or the “Corporation”) is pleased to announce that it has closed the final tranche of its oversubscribed non-brokered private placement for aggregate gross proceeds of approximately $4,730,000 (the “Offering”).

The Corporation issued a combined total of 39,409,346 units (each a “Unit“) at price of $0.12 per Unit, with each Unit comprised of one common share in the capital of the Corporation (each a “Common Share“) and one common share purchase warrant (each a “Warrant“). Each Warrant entitles the holder to purchase one additional Common Share at an exercise price of $0.22 within 24 months of the closing of the Offering (the “Warrant Term“), provided, however that if the closing price of the Common Shares on the Canadian Securities Exchange (the “CSE“) (or any such other stock exchange in Canada as the Common Shares may trade at the applicable time) is $0.25 or greater per Common Share for a period of five (5) consecutive trading days at any time after the closing date of the Offering, the Corporation may accelerate the Warrant Term such that the Warrants shall expire on the date which is 30 days following the date a press release is issued by the Corporation announcing the reduced warrant terms.

Keep reading... Show less

Thoughtful Brands Inc. (CSE:TBI)(FSE:1WZ1)(OTCQB:PEMTF) (the “Company” or “Thoughtful Brands) announces that the letter of intent with Franchise Cannabis Corp. (“FCC”), previously announced in January, has been terminated. The previously announced European joint venture with FCC will continue and allow the Company to launch and tailor its products to European consumer demands

In connection with termination of the merger transaction with FCC, the Company has agreed to pay FCC $100,000 in cash and to issue FCC 5,000,000 common shares of the Company at a deemed value of $0.05 per share. The common shares will be subject to a four-month-and-one-day statutory hold period in accordance with applicable securities laws.

Keep reading... Show less

Mergers and acquisitions (M&A) in cannabis space have helped boost the industry to new levels.

Keep reading... Show less

Strategic sale of non-core assets by Lobe adds non-dilutive capital and shareholder value

Lobe Sciences Ltd. (CSE: LOBE) (OTC Pink: GTSIF) (“Lobe” or the “Company”) is pleased to announce, further to its press release dated February 23, 2021, that it has completed the sale to Ionic Brands Corp. (“Ionic Brands”) of Lobe’s non-core cannabis assets relating to Washington-based Cowlitz County Cannabis Cultivation Inc. (“Cowlitz”) held by Lobe’s subsidiary vendor, Green Star Biosciences Inc. (the “Transaction”).

Keep reading... Show less

Adding to its existing presence on the west coast of the United States, all five KOIOS™ flavours and all four Fit Soda™ flavours will be carried in Metropolitan Market stores beginning on Monday, March 22, 2021. Serving the Seattle-Tacoma area (population 3.87 million), Metropolitan Market is one of five chains under its parent firm Good Food Holdings, which has a total of 51 stores in California, Oregon, and Washington State.

Koios Beverage Corp. (CSE: KBEV; OTC: KBEVF) (the “Company” or “Koios”) is pleased to announce that beginning on Monday, March 22, 2021, Koios’ entire line of canned beverage products will be sold at all locations of Metropolitan Market, an urban format supermarket chain in the Seattle-Tacoma area of Washington State. In Q1 2021, the Company announced multiple placements of its beverage products with regional grocers in markets on the west coast of the United States including Market of Choice in Oregon Jensen’s in Southern California and major natural grocery chain Sprouts Farmers Market which has a substantial west coast presence with over one third of its locations (360+ stores across 23 states) in California as well as Washington State 1 . The Company has also recently announced other developments relating to its expansion efforts being undertaken in 2021 such as an in-house beverage canning facility and distribution agreements with regional and national wholesale partners.

Keep reading... Show less