AdvisorShares Highlights the Pending Historic Reforms in US Cannabis Market

In This Article:

With cannabis approaching a pivotal juncture, AdvisorShares provides key investment exposure to multi-state operators through its industry-leading ETF suite

BETHESDA, Md., Oct. 21, 2024 /PRNewswire/ -- The U.S. cannabis market is approaching historic regulatory reforms, which AdvisorShares is monitoring closely as an investment leader in this specialized sector. Managing over $1 billion in cannabis ETFs, AdvisorShares provides investors with direct exposure to U.S. multi-state operators (MSOs):

(PRNewsfoto/AdvisorShares) (PRNewsfoto/AdvisorShares)
(PRNewsfoto/AdvisorShares) (PRNewsfoto/AdvisorShares)
  • MSOSLargest cannabis ETF with the majority of its investment exposure in U.S. multi-state operators

  • MSOX Designed for experienced traders only, leveraged cannabis exposure

  • YOLO Global equity cannabis ETF, including U.S. multi-state operators

"As 2024 draws to a close, the cannabis industry stands at a pivotal moment, with evolving public perception and legislative and regulatory progress both in the U.S. and abroad," said Dan Ahrens, managing director at AdvisorShares and portfolio manager of MSOS, MSOX and YOLO. "Cannabis continues to gain mainstream acceptance, and we believe elections and anticipated reforms are setting the stage for new avenues of growth and expanding opportunities for investors across the sector."

Key Catalysts Pivoting into Year-End:

Federal Cannabis Rescheduling

Current Status: Cannabis is in the process of being reclassified from a Schedule I substance, which is the most highly controlled level for substances with no accepted medical use and a high potential for abuse, to Schedule III, which recognizes medical value and lower potential for dependence.

Impact: This reclassification holds substantial benefits for U.S. cannabis companies, particularly multi-state operators (MSOs). One of the most significant advantages would be the removal of tax burdens enforced under IRS Code Section 280E, allowing companies to retain more capital on their balance sheets.

Public Support: As part of the rescheduling process, the DEA held a public comment period where 92.45% of comments of the record-breaking 43,000 comments submitted favor the change for rescheduling according to Headset analysis.

Cannabis on the Ballot – Billions at Stake

Current Status: A growing number of states continue to adopt medical or adult-use cannabis programs. As of now, a significant portion of the U.S. population resides in states with such programs, and this number is expected to increase following the upcoming November 5th ballot initiatives. These initiatives include potential milestones for several states, further driving momentum in the cannabis market.