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Mark your Calendars for US focused Cannabis ETF

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Cannabis directed EFT brings new growth and investment opportunities for the industry in the United States.

The cannabis industry has seen its fair share of struggle before getting legalized. However, those days are long gone as the industry continues to shape itself and thrive. The record-breaking sales this industry saw since the start of 2020 has already piqued investor interests globally. Within the financial market, Tilary Inc was the first pure play cannabis company to list on Nasdaq in June 2018. Now, new investment opportunities are open for investors via a cannabis focused ETF in the United States.

This opportunity is being provided by AdvisorShares – a Bethesda, Maryland based investment management company. It is going to be the first to launch such an ETF in the country. The ETF is titled ‘AdvisorShares Pure US Cannabis ETF’ and will be launched on the 2nd of September 2020. The fund would only be valid for cannabis companies based and operating within the United States.

EFT as an Opportunity to Diversify Risk

Exchange-Traded Funds (EFTs) are similar to mutual funds up-to some extent. They both hold a portfolio of investment in various securities.

This allows the investors the benefit of diversification rather than bearing the risk of investing in a single security. ETFs provide investors with exposure to multiple securities allowing them a better chance to mange risk.

What does a cannabis ETF mean for the investors?

As the cannabis industry passes through hurdles and continues to thrive, an ETF focused on the cannabis industry would allow the investors to gain exposure to various securities.

As per the estimates of the Marijuana Business Factbook, the US cannabis market is expected to grow to $130 billion by 2024. These estimates reflect the potential of the cannabis industry in the country and the hefty returns that investors can if the figures move in the predicted direction.

AdvisorShares has a long list of ETFs that have previously launched and are currently managing for their investors. The company had also launched an actively managed cannabis ETF for US and Canada based companies back in April 2019.

What to expect?

According to the prospectus of the cannabis ETF, the fund aims to invest 80% of its net assets. This is in addition to any borrowings made for investment purposes in companies that generate at least 50% of net revenue from the cannabis and hemp business in the United States.

The cannabis ETF further aims to invest in derivatives that have economic characteristics similar to such securities.

The investments by the fund will be done in listed equity securities, including both common and preferred stock. The prospectus further states that the ” Fund may invest in securities of companies that, in the opinion of the Advisor, may have current or future revenues from cannabis-related business or that are registered with the DEA specifically for the purpose of handling marijuana for lawful research and development of cannabinoid-related products.”

The fund will be adopting active management rather than passive management. More information on the prospectus of the cannabis ETF can be accessed here.

All in all the economics revolving around cannabis in the US has evolved significantly from shady deals at the corer of the block to fully functional companies selling multitude of products. The legalization of the drug in both medicinal and recreational categories is a green signal for investors showing that the industry is here to stay.

Are there any risks?

Investing in a cannabis EFT might not be as risk free as it may seem at a glance. The legislative landscape surrounding the cannabis industry plays a significant role in determining the risk factors.

A recent example was seen right within the United States whereby cannabis businesses did not qualify for the stimulus package. This overburdened the cannabis industry as other financial institutions are already out of reach due to the federal illegality of the drug.

This can explain why some investors have more inclination towards the Canadian market.

In the long-run however, due the larger population of the United States, larger investment returns can be expected.

 

 

A graduate in Bachelors of Business Administration, Yumna Haq is an ardent researcher and a dedicated writer. Having lived in three different counties, her cultural exposure is vast, allowing her to reflect more knowledge in her work. She's currently working for Cannabis Health Insider as a news writer.

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Cannabis Home Delivery Services Likely to commence in Massachusetts

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CCC is planning to allow cannabis home delivery services in the state of Massachusetts.

The CCC has agreed upon setting up a substructure for beginning cannabis home delivery services in the state of Massachusetts. The organization has presented a draft highlighting a timeline and new industry rules for starting the delivery services. Operations may begin in about a month.

The Commission has proposed an outline that would permit two types of delivery licenses for operators. Its limited delivery license would allow authorized personnel to make deliveries from CCC licensed retailers and dispensaries. Furthermore, the wholesale delivery license would allow operators to buy cannabis in wholesale directly from the cultivators. The purchased commodities will be allowed storage at a CCC approved warehouse facility. Warehouses are required to have a docking facility or sally port for a secure loading of delivery vehicles.

In additio.3n to these requirements, the CCC’s delivery draft regulations has fixed a $1,500 application fee for the licenses. Along with this, a $5,000 annual license fee for limited delivery licensees and a $10,000 annual license fee for wholesale delivery licensees is also proposed. As per the initial drafts, the CCC has decided to relinquish the application fee and first year license fee for limited delivery licensees. In the second year, the fees will be halved.

Chairman Steven Hoffman has pushed the Commission to provide finalized delivery regulations by October 20th. In the light of this, the CCC will shortly open a public comment period on the delivery regulations.

What would these cannabis delivery licenses mean for licentiate?

These delivery permits would allow licensees to supplement retail stores and provide new channels of recreational marijuana purchase.. Obtaining delivery licenses would provide a boost to small businesses. This is because the barriers to obtaining retail licenses are much more pronounced than the delivery category.

According to Commissioner Britte McBride, who wrote the regulations, “What we’ve done in addition to creating those two license types is also to establish new fees and fee structures, to require warehousing for wholesale delivery licensees, to authorize white labeling for wholesale delivery licensees. We’re defining specific operational requirements that will be in addition to the general operational requirements, and we are amending existing relevant regulations to incorporate the license types and the activities that they can undertake,”

Is it too early to allow cannabis home delivery services?

Is the requisition of cannabis really going to be just a phone call away?

For marijuana opponents, the idea of getting such convenient doorstep delivery is surely not going to be taken in good spirits. According to ballotpedia, about 46.34% of voters in Massachusetts were against the legalization of marijuana and its regulation as alcohol in 2016. For this particular segment of the population, home delivery of the drug may be an advancement that is taking place too fast. There will be concerns related to identity thefts, rise in crime rates, and products falling into wrong hands, particularly children.

Contrary to this, for the advocates of marijuana, this advancement of licenses would allow them a much needed convenience. Look at this from the perspective of bed-ridden medical marijuana patients. Leaving beds, let alone houses, is a painful endeavor for this segment of marijuana users. If other medications are already being delivered to their doorsteps, why cant medicinal marijuana join the delivery market?

For the recreational users, home deliveries might prove catalytic in reducing the stigma attached to marijuana usage. For years, marijuana has been shelled with the “not in my backyard” attitude. Despite of being advocates, most marijuana users have had to hide their association with the drug to curtail themselves from the society. If home delivery vans arrive right at the door step, it may lead to a normalization and acceptance of marijuana at some point.

Why allow delivery now?

Delivery of medical marijuana is not a new concept, even in the state of Massachusetts. Almost six authorized medical dispensaries have provided this service to registered patients since 2018.

If more licenses are granted for more legal businesses, illegal delivery services may be controlled right in infancy. In addition, this will also provide low cost business opportunities to aspiring market entrants.

The government provides no support to the marijuana industry due to its illegal federal status. By creating such opportunities at the state level, barriers to entry may be successfully reduced.

 

 

 

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Study Shows No Significant Mental Effects In Elderly Patients Using Medicinal Cannabis For Chronic Pains

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Cannabis for chronic pain doesn't impair brain

The elderly, often subjected to various medical conditions, need therapies and treatments as much as any other age group. Yet unfortunately, some point out that the field sometimes doesn’t get as much attention as younger groups. That may explain why pediatric doctors greatly outnumber geriatric specialists. And then, there does exist the tendency for the elderly to be more likely to be dismissed, compared to younger patients. Regardless, one of the most common aliments in the elderly is that of chronic pain in different parts of their aged bodies. Luckily, medicinal cannabis may hold the solution for them, as numerous experts find its properties useful for old people.

A recent study from Israel set out to ascertain whether or not weed would harmfully affect the cognitions of a sample of aged individuals. The participants included both middle-aged individuals and the elderly ones, as both seemed likely to have chronic pains. Furthermore, because the aim was to find effects on cognition, both types had fully-developed brains. What the scientists found may further the needle for the campaign to normalize medicinal cannabis.

The study set up strict controls and parameters to keep it as accurate as possible

The problem that arises with any diverse sample is the presence of individual differences. If not adjusted for, these can lead to a skewed data set and make the results questionable. In this case, the researchers strove to ensure all participants were as similar as possible. They were all above the age of 50, and no significant history with alcohol abuse or hard drugs. Some of the participants were on medicinal weed licenses, meaning they actively used it regularly. Others used it very sporadically. However, all abstained from cannabis use at least 3 hours prior. They also had similar education levels and all medically recognized as mentally sound.

The study included exactly 63 licensed individuals with the remaining 62 unlicensed. The male to female ratio was also about half and half, so sex didn’t affect the results. This almost even split served to better reproduce a normal distribution with acceptable standard deviations. Furthermore, they used a reliable software called ‘CogState’, which comprises of computerized cognitive exams. These exams covered everything required, from memory to attention spans.

The results indicated that regular cannabis use to treat chronic pains left no significant impact on cognition in the elderly

By all standards of scientific research methodology, the study mainly came out as a success. The results showed the initial hypothesis proved correct, and cannabis caused no major mental changes. In practically all participants, cognition was on par with normal levels and the frequent cannabis users did not vary much from rare users. Hence, the paper claimed that treating chronic pains with CBD (cannabidiol) and THC (tetrahydrocannabinol) would leave no lasting mental effects.

However, one interesting and alarming finding the study showed was an elevated risk of cardiovascular disease from cannabis. In addition, regular users also showed elevated frequencies of depression. The former of these may occur due to smoking cannabis rather than eating it. However, it does corroborate what a recent American Heart Association (AHA) paper claims.

While the study did have some limitations, it still shows important findings for those on the fence about medicinal weed

No truly scientific study can claim to have zero room for improvement. While they accounted for most extraneous factors, the biggest factor was the cross-sectional aspect. This means that due to broad generalizations about samples, the study cannot definitively establish cause and effect. Also, they didn’t account for previous medicinal histories.

However, the study still puts to rest many fears about brain damage from weed. For more on medicinal cannabis, stay tuned!

 

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Why New Jersey’s Telemedicine For Prescription Cannabis Is A Big Deal

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Telemedicine now available for prescription medicine in New Jersey

Earlier this month, legislation in New Jersey seems like it may take a turn in favor of medicinal cannabis using ‘telemedicine’. In a world, and nation, devastated by the ongoing COVID-19 pandemic, even visiting a physician may prove deadly. After all, hospitals, now overrun with emergent coronavirus cases, may become cesspools of airborne pathogens. Even healthcare providers still face significant risk of infection in their line of work. And this despite them donned in full protective gear and thoroughly disinfected regularly. As a matter of fact, going out anywhere public unnecessary remains inadvisable by the WHO and health authorities.

Recently, the members of the New Jersey state assembly convened to talk about various concerning issues. One of the biggest and most immediate issues, the plight of millions of patients needing prescription drugs at home, needing resolving. This especially held true of those requiring medicinal cannabis treatments, a drug not available at every nearby pharmacy. Therefore the members ruled to permit the use of telemedicine, a game-changing new service in the United States.

Telemedicine holds the key to quality healthcare in the middle of a dangerous pandemic

Not many outside of the medical field would immediately know what the concept refers to. Broadly speaking, telemedicine refers to any healthcare practice done without the patient and physician needing to interact in person. Looking at the etymology (the origin of the word), it’s all in the name (translating to long distance medicine). Therefore, video conferencing consultations between the patient at home and the doctor is an example of telemedicine. In addition, the purchase and delivery of prescription drugs from and to home online also counts as such.

So while it may not seem like anything more than ‘Zoom/Amazon but for medicine’, this is a gross understatement. Regular meetings, related to business, casual chatting and interviews, already occurred online before COVID-19. That classes and work began conducting over video conferences wasn’t anything unforeseeable as the pandemic grew. However, in traditional medical schools, few students receive training for how to treat patients online. After all, a good diagnosis usually comes with thorough rapport, careful inspection of the body and various examinations. So now the COVID-19 pandemic has doctors scrambling to learn an entirely new modality of work. And the concept of sitting safe at home while your lifesaving drugs come to you, risk-free is incredible.

The move comes unexpectedly, as cannabis legislation in New Jersey still holds some previous prejudices

The truth of the matter is that the United States is still a nation where recreational cannabis usage is federally illegal. And medicinal cannabis, despite modern scientific studies extolling its proven health benefits as a therapeutic agent in many conditions, as well. That means that the ‘default’ law for any state is that the drug is banned, with even possession resulting in criminal offence. The only state exceptions to this practice worked hard to exempt themselves. Even in New Jersey, recreational cannabis remains off the table, but medicinally it gained allowance.

As a result, the cannabis industry, which makes everything cannabis related (from hemp to CBD oils), doesn’t do well here. There simply isn’t a big enough market for products in states where cannabis is literally banned. In the case of New Jersey, only specially licensed dispensaries can legally sell prescription marijuana. Law makers historically have shown very little care to make medicinal weed more accessible, in addition. Furthermore, even healthcare providers may show hesitance to prescribe cannabis due to the amount of legal work required by state laws.

All in all, this move signals a step in the right direction. Hopefully, patients will receive their medications soon and safely.

 

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