The Horizons Emerging Marijuana Growers Index ETF (AQN:HMJR), which only began trading last Wednesday, has added another marijuana stock to invest in.
The aim of HMJR is to showcase publicly-listed, primarily North American companies with small capitalization, that are involved in the marijuana industry through channels of production, cultivation and/or distribution.
In general, stocks held within HMJR will have an initial market capitalization with a minimum of $50 million and a maximum of $500 million. The expectation for each issuer is to represent no more than 8% of the Index at the time of rebalance.
[Please note: The contents of the following press release have neither been approved or disapproved by the CSE, FSE or OTCQB, nor do any of these exchanges accept responsibility for accuracy or adequacy of this press release.]
Marapharm Ventures Inc (CSE: MDM) (OTXQX: MRPHF) (FSE: 2M0) joins the newly-established Horizons ETF, increasing pot stock investment opportunities.
Marapharm CEO, Linda Sampson, issued this statement at the time of the company’s announcement:
“We are very pleased to be included in this new ETF and have expectations that the share price and liquidity of companies like ours will be enhanced proportionately by the buying power of an ETF. This ETF was specifically constructed to incorporate companies with operations in certain U.S. states, where cannabis use has been legalized under state law. These were largely overlooked by most prior ETF offerings.”
Marapharm, which invests in facilities for medical and recreational marijuana, deals in public trades. The company currently trades with other marijuana stocks in:
- Canada (ticker symbol MDM)
- the U.S. (ticker symbol MRPHF on the OTCQB)
- and several European exchanges (Stuttgart, Tradegate, L & S, Quotnx,Dusseldorf, Munich and Berlin) -2Mo on the FSE.
They are in the midst of expansions that will broaden their industry presence to include cultivation and production, with dispensary facilities in key U.S. states (Washington, Nevada, California), with goals of worldwide expansion.
Will Marapharm be one of the marijuana stocks to invest in 2018?
Marapharm’s ability to retain good standings with these listings is partially dependent on meeting and maintaining licensure requirements. At this point, the company has secured licenses in California and Nevada, both legal states for marijuana, though the drug remains illegal by U.S. federal law.
One thing marijuana stocks investors and shareholders need to keep in mind is the potential for federally-sanctioned enforcement to affect future investments. Adverse federal enforcement could also affect Marapharm’s availability to receive funding, private and public capital in the future.
As has been discussed in other articles on this site, federal actions in the U.S. hold a great deal of sway in the potential growth of the industry and contribute to a degree of uncertainty among marijuana stocks.
Marijuana stocks in Canada on the CSE are required to provide whatever disclosure is deemed necessary by regulators, as well as comply with all applicable licensing procedures. Each state in which the company operates has its own regulatory framework that must be adhered to.
Copies of Marapharm’s licenses can be seen on the company’s website. Marapharm has taken great care to ensure compliance in all aspects of the company’s operations, from internal procedures to attorneys focused on compliance issues who continually monitor changes in federal and state law.
With this legal support in place, firms can inform and assist the company in making any necessary policy or procedural changes to remain in compliance within Canada and the U.S.
All of these precautionary measures make Marapharm look like one of the marijuana stocks to keep an eye on in 2018.
(For more information on the launch of the Horizons EFT, read More Options for Canadian Marijuana Stocks as another ETF Opens).