The Poseidon Dynamic Cannabis ETF (NYSE: PSDN), led by founders Emily and Morgan Paxhia and managed by AdvisorShares is closing. The ETF has lost approximately 74% in value since it was founded, versus a 1.7% decline in the S&P 500.
The ETF will stop trading on August 25.
PSDN began unwinding shares as it let go of 14,955 shares of Trulieve (OTC: TCNNF) and 24,460 in Planet 13 Holdings this week. In addition to those holdings, it sold off:
- Cresco Labs (28,768 shares)
- InterCure (16,142)
- Organigram (12,548)
The ETF still looks as if it still needs to offload shares of:
- TerrAscend (10,000)
- Curaleaf (20,000)
- Columbia Care (30,000)
The final distribution to shareholders is expected on or about Sept. 1.
The ETF launched in November 2021, joining the AdvisorShares Pure US Cannabis ETF (Ticker: MSOS) and the AdvisorShares Pure Cannabis ETF (Ticker: YOLO) as dedicated cannabis investment strategies within the AdvisorShares ETF suite.
However, cannabis stock valuations have been mired in a two-year bear market. A lack of legislative action and continuing headwinds in the industry conspired to keep investors out. Many committed investors have lost almost their entire investments as valuations plunged.