Purpose Investments and HANetf are set to launch the first Medial Cannabis UCITS EFT (CBSX).
The Medical Cannabis and Wellness ETF is the first medical cannabis focused ETF to be listed in Europe, and shows significant headway in the commercialization and marketing of cannabis based products.
CBSX will list in Germany initially, with a Total Expense Ratio of 80bps and has been given the green light to be sold in the UK, Italy & Ireland.
Notably, the UK us the worlds largest producer and exporter of legal cannabis for medical and scientific uses, as headways with the NHS have been made over the last few months.
CBSX is set to launch the week commencing 13th January on Deutsche Boerse (ETR: DB1) and will become the first and only European UCITS ETF to deliver targeted exposure to the rapidly expanding medical cannabis industry.
Purpose Investments are a Canadian ETF and asset management company, with holdings of over CAD8 billion assets under management.
Purpose initially expressed their interest in the cannabis sector after launching a cannabis fund in Canada in 2017, which was called the Purpose Marijuana Opportunities Fund.
The Medical Cannabis and Wellness UCITS ETF offers specific exposure to the medical cannabis industry which has gone through massive development and progress in many EU countries.
Som Seif, CEO of Purpose Investments commented: “The medical cannabis industry was pioneered in Canada, and we’re thrilled with the opportunity to partner with HANetf to take what we have learned from our Purpose Marijuana Opportunities Fund (MJJ) to Europe. We believe that the cannabis sector is still in the infancy stages of a multi-year growth phase and that there is ample opportunity for innovation and new discoveries. We are very excited to embark on this journey with HANetf in a global investor market.”
The CBSX ETF will consist of publicly listed companies that conduct legal business activities in the medical cannabis, hemp and CBD industry.
The newly formed ETF will cover sub sectors including: Producers and suppliers of medical cannabis, CBD focused Biotech equipment, producers of medical cannabis consumer products and software solutions for medical cannabis producers among others.
Hector McNeil, co-Founder and co-CEO at HANetf, said:
“We are very pleased to confirm our partnership with Purpose Investments to bring CBSX to UCITS investors, expanding the range of funds on the HANetf platform which target long-term, transformational themes. Medical cannabis is an emerging industry with huge growth potential and significant investor interest, and CBSX provides a unique opportunity for investors to access this nascent industry through a rigorously screened, liquid and diversified portfolio.”
“Up until now, European investors have experienced restricted access to the cannabis market. With the launch of this truly innovative ETF, there is now a product for investors who want exposure to the cannabis industry through a pre-screened basket of Cannabis securities and in a regulated UCITS ETF. Due to the operational and legal due diligence that has gone into developing this truly innovative ETF, investors can readily access an investment vehicle which can significantly reduce their legal risk versus investing directly in single cannabis securities. It is also is a great way to diversify as investors don’t need to research each individual security and the ETF may help to withstand the short-term volatility of individual securities, potentially making for a lower risk, longer-term investment.”