You’re reading a copy of this week’s edition of the New Cannabis Ventures weekly newsletter, which we have been publishing since October 2015.
We detailed several attributes that make the sub-sector attractive, including not being subject to 280E, the possibility to be traded on higher exchanges and the ability to scale across multiple states relative to cannabis companies restrained by a lack of interstate commerce.
Each quarter, the professionally managed Global Cannabis Stock Index is rebalanced, and we just completed that exercise this week, with the rebalancing taking place at the close of business on June 30th.
The index will include 44 names, with 13 from the ancillary sub-sector, making it, along with MSOs, the largest sub-sector, with each at 29.5% of the index.
The gain in the number of ancillary companies, along with the increases in the number of MSOs and international companies, has come at the expense of Canadian LPs and CBD companies.
In addition to the advantages relative to direct operators that we have previously described, ancillary companies allow investors to participate in the growth of the industry without having to pick the best operators.
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