As the global cannabis sector continues to grow and evolve, Subversive Capital Advisor, a prominent investment company with a keen focus on emerging thematic sectors, is at the helm of propelling the industry forward. In a recent announcement, the company disclosed its latest venture – the launch of its sixth exchange-traded fund (ETF), dubbed the Subversive Cannabis ETF, with the ticker LGLZ, on the Cboe BZX Exchange.
Christian H. Cooper, a significant figure in the investment sector, is set to lead the ETF as its Portfolio Manager, with trading expected to commence on 19th September 2023.
This actively managed fund is structured to foster long-term capital growth by allocating at least 80% of its assets in securities of firms directly participating in the global cannabis sector, encompassing U.S. operating entities.
Investors should note a 0.75% management fee associated with the fund.
Cooper expressed optimism regarding the potential shift of cannabis to a Schedule III status by the DEA, a move which, he believes, would markedly alter the business landscape for cannabis in the US, bypassing the currently politically divided Congress.
He noted that the ETF is keen on investing in firms with significant cash flows from operations, positioned to be the frontrunners in moving to larger exchanges.
The inception of this fund comes at a time when there is an urgent call for the destigmatization of the cannabis sector, an industry once tarnished by racially motivated policies dating back to the Nixon era in 1970.
With mounting evidence supporting the therapeutic benefits of THC – the main active constituent of cannabis – Cooper stressed the urgent need for providing viable alternatives to opioids and normalising businesses in this domain.
Additionally, Cooper highlighted the critical role of 280E tax reform in fostering a conducive environment where cannabis can be accessible nationwide devoid of fear of repercussion, thereby paving the way for companies in this sector to thrive and compete fairly with other industries.
The ETF is set to trade on the Cboe BZX Exchange, a prominent marketplace operated by Cboe Global Markets, known for its robust market infrastructure and being a favourable listing venue for global exchange-traded products.
In an industry poised for potential growth and transformation, this ETF stands as a beacon for investors keen on navigating the ever-expanding cannabis sector.