A new cannabis-focused exchange-traded fund (ETF) is gearing up to launch, offering investors a chance for exposure of marijuana producer stocks with smaller market capitalizations.
The Horizons Emerging Marijuana Growers Index ETF, which will launch February 14 will cap its holdings between $50 and $500 million in market capitalization, while other ETFs like its fellow Horizons one, the Marijuana Life Sciences Index ETF (TSX:HMMJ), holds some of the biggest cannabis producers in Canada.
The new ETF will also split from its Horizon relative by trading on Aequitas NEO Exchange, a fairly new exchange in Canada. The NEO Exchange launched in 2015 as an attempt to challenge the established Canadian markets.
“HMJR will give investors direct exposure to a growing group of Canadian and global marijuana cultivation and distribution companies,” Steve Hawkins, president and Co-CEO of Horizons ETFs said in the company’s announcement.
According to Horizons, the new ETF is focused primarily on North American stocks, but it could include up to 20 percent of issuers “that are in developed markets outside North America.” The index will also be capped so that no stock in its holdings can represent over eight percent of the total weight.
HMJR set to launch on February 14 in NEO Exchange
So far no details have been shared as to who or how many holdings will HMJR have once it officially launches. Horizons said it plans to finish the initial offering of units for its designated broker after market closure on February 13.
According to Horizon’s documents on HMJR, interested investors will have to face an annual management fee of 0.85 percent of the ETF’s value through the returns. Horizons also gave this ETF a high-risk rating based on the volatility. The rating may change once the actual holdings start producing returns.
HMJR will represent the third cannabis-focused ETF in Canada, after the launch of an actively managed ETF from Redwood Asset Management. Greg Taylor, the person in charge of running the Redwood Marijuana Opportunities Fund, told The Globe and Mail the Redwood ETF look for “Toronto-listed companies with low costs, high value-added businesses or international exposure.” The ETF would also stay clear from companies operating in any form in the US.
It wasn’t long ago that the possibility of a cannabis-focused ETF was discussed. Now after the launch of this new index, investors will be able to choose between three cannabis centered public ETFs. This movement shows the rapid increase the cannabis industry has shown in the public market.
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
In the evolving rush of mergers and acquisitions (M&A) in the Canadian cannabis market, Canopy Growth (NASDAQ:CGC,TSX:WEED) announced it will acquire The Supreme Cannabis Company (TSX:FIRE,OTCQX:SPRWF) in a deal worth approximately C$435 million.
Meanwhile, a cannabis operator in the US confirmed this week that it will receive a financial boost from a partner to solidify its position in the burgeoning Pennsylvania state market.
The Board of Directors of Aphria Unanimously Recommends Shareholders Vote “For” the Arrangement
Aphria to Host Special Meeting of Shareholders on Wednesday, April 14, 2021 to Approve Proposed Aphria-Tilray Business Combination
Love Hemp Group PLC (AQSE: LIFE) (OTCQB: WRHLF), one of the UK’s leading CBD and Hemp product suppliers, announces that as part of the equity fundraise announced yesterday, Antony Calamita and Andrew Male, Directors of the Company, subscribed for 285,714 Ordinary Shares and 1,428,571 Ordinary Shares respectively. The subscriptions are at a price of 3.5 pence per ordinary share for a total of £60,000. Following these subscriptions, Antony Calamita is now interested in 54,385,714 Ordinary Shares, representing 8.61% of the Company’s share capital as increased by the fundraising, and Andrew Male is now interested in 6,138,196 Ordinary Shares, representing 0.97% of the Company’s issued share capital as increased by the fundraising
Further, the timetable for receipt of applications under the Broker Option, which was also announced yesterday, has been extended until 5:00 pm 9 April 2021 to capture additional interest which was unable to be completed yesterday.
Revive Therapeutics Ltd. (“Revive” or the “Company”) (CSE: RVV, USA: RVVTF), a specialty life sciences company focused on the research and development of therapeutics for medical needs and rare disorders, would like to provide the following dial-in information for the Company’s upcoming Annual and Special Meeting (the “Meeting”) scheduled to be held at 11:00 a.m. Eastern Daylight Time on April 12, 2021. Shareholders and proxyholders may access the Meeting via teleconference by dialing 647-723-3984 or 1-866-365-4406 from Canada or the United States, then entering participation code “8487744” followed by the pound (“#”) sign.
In consideration of the COVID-19 pandemic and the recent restrictions imposed by the Ontario Provincial Government, shareholders and proxyholders will only be able to attend the Meeting via teleconference and will not be permitted to attend the Meeting in person at the address provided on the Notice of Annual and Special Meeting of Shareholders.
Gage Cannabis Announces Exclusive Partnership With Blue River to Bring Award-Winning Cannabis Extracts to Michigan
Gage Growth Corp. (“Gage” or the “Company”) (CSE:GAGE), a leading high-quality craft cannabis brand and operator in Michigan, announced today that it has signed an agreement with Blue River™ Extracts & Terpenes (“Blue River™”) to bring the brand’s award-winning solventless technology and other trademark branded products to the state’s medical patients and cannabis consumers. The Company will have exclusive rights to Blue River™’s premium product offerings in Michigan.