Subversive Capital Advisor is set to launch its sixth exchange-traded fund (ETF) named Subversive Cannabis ETF LGLZ on the Cboe BZX Exchange, which is operated by Cboe Global Markets, a key global venue for listing exchange-traded products.
Targeting long-term capital appreciation, the LGLZ Fund will invest a minimum of 80% of its net assets in global cannabis sector securities, with a special emphasis on U.S. operating firms. According to a press release, the management fee for the fund is 0.75%.
Addressing the trajectory of cannabis businesses in the U.S., Christian H. Cooper, who will act as the ETF’s portfolio manager stated, “We do not believe a Congress this politically divided will meaningfully act on cannabis at the federal level. However, we do believe a regulatory move to a Schedule III status changes the trajectory for this business in the United States without Congressional action.”
President Nixon classified cannabis as a Schedule 1 drug in 1970. Now, the Department of Health and Human Services (HHS) is proposing its reclassification to Schedule III. The DEA is evaluating this shift.
“It is time for companies in this space to be normalized and to have access to the same resources and opportunities for profitability as businesses in other industries,” said Cooper, highlighting the therapeutic effects of THC as an alternative to opioid use in the U.S.
“A lot of that relief will come with 280E tax reform. And we believe it is time for cannabis to be accessible nationwide without fear of repercussion.”
In light of these developments, the Benzinga Cannabis Capital Conference on September 27-28 in Chicago aims to address this evolving regulatory framework. All information is available at bzcannabis.com
Image by El Planteo