William Sumner
It’s time for your Daily Hit of cannabis financial news for December 11, 2019.
On the Site
The Green Lining In The Cannabis Layoff Cloud
Considering the fact that the cannabis industry is still in its infancy on the grand scale, it comes as no surprise that this industry is still facing a variety of challenges and setbacks. One of the many challenges that the cannabis industry is currently facing is appropriate levels of workforce and dealing with potential layoffs. Let’s take a look at California as an example.
Cannabis Exchange Traded Note Launched By REX Shares
REX Shares (REX) has launched the MJO, the first leveraged exchange-traded product in the U.S. linked to the cannabis industry. MJO is an Exchange-Traded Note (ETN), is linked to MSMJ, the Indxx MicroSectors™ North American Cannabis Index, and will seek to provide 2x leveraged exposure to the Index. In a statement, REX announced that the MJJ, a 1x version of the Exchange Traded Notes is linked to the Index.
Study: Individuals with Depression More Likely to Use Cannabis
Cannabis is on the rise in the United States, especially among those suffering from depression. According to a study published in the journal Addiction, individuals with depression were more likely than those without depression to use cannabis.
In Other News
TerrAscend
TerrAscend Corp. (CSE: TER) announced its intention to complete a private placement offering. The company plans to offer approximately 10.77 million units of the company at a price of CAD$2.45 per share, which will generate gross proceeds of US$20 million. Each unit consists of one common share of the company and one common share purchase warrant. Assuming its completion, the company will use the proceeds of the offering to speed up the completion of its New Jersey cultivation and processing facility and to make a purchase price payment for the acquisition of Ilera Healthcare. So far, the company has received indicative lead orders totaling approximately US$15 million from Executive Chairman Jason Ackerman, Entourage Effect Capital, funds advised by JW Asset Management, LLC and/or other affiliated entities of Chairman Jason Wild, and others.
