Subversive Capital Advisor Launches New Cannabis ETF

The ETF is being launched with the expectation of cannabis rescheduling.

Subversive Capital Advisor is launching its sixth exchange-traded fund (ETF) – Subversive Cannabis ETF (Ticker: LGLZ) on Cboe BZX Exchange. LGLZ will be an actively managed ETF that is expected to begin trading on September 19, 2023. Christian H. Cooper will act as the ETF’s Portfolio Manager.

“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 meaningfully changes the trajectory for this business in the United States without Congressional action. We further anticipate the DEA will accept and finalize this recommendation.” said Mr. Cooper. “The LGLZ Fund is concentrated in those names we believe are among the strongest cash flow from operations and could be the first to uplist to larger exchanges. Further, we welcome any progress toward de-stigmatizing the cannabis industry.”

The LGLZ Fund said it seeks to achieve long-term capital appreciation by investing at least 80% of its net assets in securities of companies that are directly involved in the global cannabis sector, including but not limited to, U.S. operating companies. The Fund has a 0.75% management fee. The fund’s constituents include companies that derive at least 50% of their net revenue from legal THC-related sales, with a particular focus on companies with cash flow from operations.

The top holdings are as follows:

24.80%      GTBIF – Green Thumb Industries

19.86%       VRNOF – Verano

19.81%       CURLF – Curaleaf

15.10%       TCNNF – Trulieve

14.93%       CRLBF – Cresco Labs

5.04%       CCHWF – The Cannabist Company

Cooper continued, “Deaths of despair are exploding in the U.S. and we desperately need opioid alternatives. Since the therapeutic effects of THC continue to be proven by science-backed trials and research, 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. 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.”

Debra Borchardt

Debra Borchardt is the Co-Founder, and Executive Editor of GMR. She has covered the cannabis industry for several years at Forbes, Seeking Alpha and TheStreet. Prior to becoming a financial journalist, Debra was a Vice President at Bear Stearns where she held a Series 7 and Registered Investment Advisor license. Debra has a Master's degree in Business Journalism from New York University.

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