Mark Noble: Expectations from Legalization and Cannabis ETF Investing

TL;DR

Horizons launched the HMJ ETF to meet the growing demand for marijuana equities. They have seen significant success, with the fund reaching 1 billion dollars in just 18 months.

Transcript

for the investing news network I Brian McGovern here with Mark Noble the senior VP of ETF strategy for horizon CTF mark thank you so much for your time today a pleasure to be here so mark why don't we start with the path that horizons has taken in regards to cannabis thoughts you guys launched a champion hmm Jay sorry that has become a leading inde... Read More

Key Insights

• 💗 Horizons launched the HMJ ETF in response to the growing demand for marijuana equities.
• 🙈 The fund has seen rapid growth, reaching 1 billion dollars in just 18 months.
• 🚥 Horizons is also focusing on smaller cannabis companies with attractive valuations through the launch of the HMJR ETF.
• 🇨🇦 Expectations for the initial impact of legalization in Canada are mixed, with the potential for disappointment in sales initially.
• 🍉 However, there is long-term growth potential in the global legalization story, particularly in countries like Germany.
• 🤵 The Canadian recreational market may already be priced in, but there is still room for Canadian LPs to expand as global players.

Questions & Answers

Q: What drove the demand for the HMJ ETF?

The demand for marijuana equities has been growing for the past few years, particularly with the liberalization of marijuana rules in Canada. The HMJ ETF provides investors with a diversified solution to gain exposure to this sector.

Q: Why did Horizons launch the HMJR ETF?

Horizons is more excited about the smaller cannabis companies due to their attractive valuations. These mid-tier producers have the potential to be acquisition targets or find their own branding strategies to compete with larger companies.

Q: What are the expectations for legalization in Canada?

Investors should be prepared for potential disappointment initially, as revenues and success in selling marijuana to the recreational public will take time to materialize. However, there is still long-term potential for growth, especially in the global legalization story outside of Canada.

Q: What opportunities exist outside of Canada for cannabis companies?

Countries like Germany offer larger markets and higher per gram prices for marijuana, presenting revenue-rich opportunities for Canadian LPs. While the Canadian recreational market may already be priced in, there is potential for these companies to become global players.

Summary & Key Takeaways

• Horizons launched the HMJ ETF in response to investor demand for marijuana equities.

• The fund has been successful, reaching the 1 billion dollar mark within 18 months.

• Horizons has also launched the HMJR ETF to focus on smaller cannabis companies that offer attractive valuations and potential for growth.