NEW YORK, Sept. 19, 2023 /PRNewswire/ –
Subversive Capital Advisor (the “Advisor” or the “Company”), a Registered Investment Advisor primarily focused on different mission-driven thematic emerging sectors, is launching its sixth exchange-traded fund (“ETF”) – Subversive Cannabis ETF (Ticker: LGLZ) on Cboe BZX Exchange. LGLZ is an actively managed ETF that is expected to begin trading on September 19th, 2023. Christian H. Cooper will act as the ETF’s Portfolio Manager.
The LGLZ Fund 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.
“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.”
President Nixon classified cannabis in 1970 as a Schedule 1 drug which includes, ‘drugs with no currently accepted medical use and a high potential for abuse.’ According to former Nixon domestic policy chief John Ehrlichman1, this was a decision out of racism that directly targeted Black Americans and led to high incarceration rates. Marijuana use is roughly equal among Blacks and whites, yet Blacks are 3.6 times as likely to be arrested for marijuana possession2. It is now up to the discretion of the DEA to accept the recommendation and formally move cannabis to schedule III3.
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.”
Cboe BZX Exchange is operated by Cboe Global Markets, a leading provider of market infrastructure and tradable products, and a premier listing venue for exchange-traded products globally.
THC or tetrahydrocannabinol is the principal psychoactive constituent of cannabis and one of at least 113 total cannabinoids identified on the plant. It is the main active ingredient of cannabis.
HHS is the United States Department of Health and Human Services.
DOJ is the United States Department of Justice.
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1 harpers.org/archive/2016/04/legalize-it-all
2 graphics.aclu.org/marijuana-arrest-report
3 thehill.com/policy/healthcare/4179304-hhs-sends-recommendation-to-dea-on-rescheduling-marijuana
About Subversive
Subversive Capital Advisor LLC is a Registered Investment Advisor.
The firm’s investment strategies primarily focus on different mission-driven emerging sectors that we believe will shape the economy of the future. The companies we invest in are bold, daring, and uninhibited enough not to let the world as it exists today limit their imagination for opportunities of the future.
Leveraging our team’s track record in the private sector, we aim to bring all investors our institutional knowledge and network to drive meaningful value for their portfolios via diversified ETFs.
Before investing you should carefully consider LGLZ’s investment objectives, risks, charges and expenses. This and other information is in the prospectus, a copy of which may be obtained by visiting LGLZ’s website at www.subversiveetfs.com. Please read the prospectus carefully before you invest.
Investing in securities involves risk, including possible loss of principal. A strategy or emphasis on social equity, social justice and/or diversity may limit the investment opportunities available to a portfolio. Therefore, the portfolio may underperform or perform differently than other portfolios that do not have similar requirements.
Cannabis Industry Risk. The cannabis industry is a very young, quickly evolving industry subject to rapidly evolving laws, rules, and regulations, and increasing competition. These changes may cause companies in the cannabis industry to shrink or suddenly close, while others may be forced to change their business model to survive. United States Regulatory Risks of the Cannabis Industry. The possession and use of cannabis, even for medical purposes, is illegal under federal and certain states’ laws, which may negatively impact the value of the Fund’s investments. Non-U.S. Regulatory Risks of the Cannabis Industry. The companies that are listed on exchanges in non-U.S. countries in which the Fund may invest are subject to various laws, regulations, and guidelines relating to the manufacture, management, transportation, storage, and disposal of cannabis, as well as being subject to laws and regulations relating to health and safety, the conduct of operations and the protection of the environment. Operational Risks of the Cannabis Industry. Companies involved in the cannabis industry face intense competition, may have limited access to the services of banks, may have substantial burdens on company resources due to litigation, complaints, or enforcement actions, and are heavily dependent on receiving necessary permits and authorizations to engage in medical cannabis research or to otherwise cultivate, possess or distribute cannabis. New Fund Risk. The Fund is a recently organized management investment company with no operating history. As a result, prospective investors do not have a track record or history on which to base their investment decisions. Non-Diversification Risk. Because the Fund is “non-diversified,” it may invest a greater percentage of its assets in the securities of a single issuer or a lesser number of issuers than if it was a diversified fund.
Forward-Looking Statements
This news release includes forward-looking information and statements, which may include, but are not limited to, information and statements regarding the plans, intentions, expectations, estimates, and beliefs of the Company. Words such as “expects”, “continue”, “will”, “anticipates” and “intends” or similar expressions are intended to identify forward-looking statements. These forward-looking statements are based on the Company’s current projections and expectations about future events and financial trends, and on certain assumptions and analyses made by the Company in light of experience and perception of historical trends, current conditions and expected future developments and other factors management believes are appropriate.
Forward-looking information and statements involve and are subject to assumptions and known and unknown risks, uncertainties, and other factors that may cause actual events, results, performance, or achievements of the Company to be materially different from future events, results, performance, and achievements expressed or implied by forward-looking information and statements herein. Although the Company believes that any forward-looking information and statements herein are reasonable, in light of the use of assumptions and the significant risks and uncertainties inherent in such information and statements, there can be no assurance that any such forward-looking information and statements will prove to be accurate, and accordingly, readers are advised to rely on their own evaluation of such risks and uncertainties and should not place undue reliance upon such forward-looking information and statements. Any forward-looking information and statements herein are made as of the date hereof, and except as required by applicable laws, the Company assumes no obligation and disclaims any intention to update or revise any forward-looking information and statements herein or to update the reasons that actual events or results could or do differ from those projected in any forward-looking information and statements herein, whether as a result of new information, future events or results, or otherwise, except as required by applicable laws.
