December 31, 2019

[Pages:2]June 30, 2021

$ Billion

ABOUT THE ETF

Supported by favorable regulatory trends, increasing use cases and growing public acceptance, cannabis is one of the fastest growing current investment themes. To put the opportunity into perspective, the global cannabis market is estimated to reach $630 billion by 2040 up from $12 billion today.* THCX was constructed to make investing in cannabis easier by helping investors get exposure to a pure-play basket of stocks that are expected to benefit from the burgeoning hemp and legal marijuana industries. Although cannabis itself has been around for centuries, the industry's near-term growth trajectory is similar to several disruptive and now familiar growth stories witnessed over the past three decades such as broadband and cable television.

5-YEAR GROWTH IN $5 BILLION-PLUS INDUSTRIES

30

25

20

15

10

5

0

1

2

3

4

5

6

Basic Cable '86

Home Video '88

Legal Cannabis '16 ('19 & '20 est .)

Broadband '02

Source: Arcview Market Research, "The State of Legal Marijuana Markets, 5th Edition"

S&P 500: An equities index generally considered to be a benchmark for the US equities market. It is comprised of the 500 largest companies having common stock listed on the NYSE or NASDAQ Russell 2000: An equities index generally considered to be a benchmark for the small-cap US equities market. Beta: Beta represents the systematic risk of a portfolio and measures its sensitivity to a benchmark. A beta of 1 implies that you can expect the movement of a manager's return series to match that of the benchmark used to measure beta.

*Seaport Global Securities, February 2019

TOP 10 INDEX HOLDINGS

COMPANY

Tilray Inc. Canopy Growth Corp. Village Farms International Inc. GrowGeneration Corp. Cronos Group Inc. Amyris Inc. Hydrofarm Holdings Group Inc. Organigram Holdings Inc. Fire & Flower Holdings Corp. RIV Capital Inc.

TICKER

TLRY CGC VFF GRWG CRON AMRS HYFM OGI FAF RIV

EXCHANGE WEIGHT

NASDAQ NASDAQ NASDAQ NASDAQ

6.89% 6.53% 5.94% 5.52%

NASDAQ

4.88%

NASDAQ

4.69%

NASDAQ

4.63%

Toronto

4.50%

Toronto

4.50%

Toronto

4.41%

TOTAL: 52.49%

Constituents are subject to change.

INDEX DETAILS

Rebalance Frequency: Monthly Weighting Methodology: Modified Market Cap Index Holdings: 32 Median Market Cap: $414.69 million Beta vs. S&P 500: 2.12 Beta vs. Russell 2000: 1.72

FUND FACTS

Ticker Symbol: THCX CUSIP: 84858T400 Inception Date: July 8, 2019 Listing Exchange: NYSE Arca Shares Outstanding: 8,850,000 Net Assets: $151.50 million Avg. Daily Volume (shares): 161,830 Trailing 12-month dividend: $0.2012 per share Options Available: Yes Net Expense Ratio: 0.75% Fee Waiver: 0.20% Gross Expense Ratio: 0.95%

The Fund's advisor, OBP Capital, LLC (the "Advisor"), has entered into fee waiver agreement with the Fund under which it has agreed to waive or reduce its fees by 0.25% of the average daily net assets of the Fund through June 30, 2022, and may be terminated by the Board of Trustees at any time. The Advisor cannot recoup from the Fund any amounts paid by the Advisor under the fee waiver agreement.



INDUSTRY BREAKDOWN

Capital Goods Diversified Financials Food & Beverage Household & Personal Products Material s Pharmaceuticals & Biotech Retai ling Semiconductors & Semi Equip.

LEGAL CANNABIS GROWTH TRENDS

COUNTRY BREAKDOWN

June 30, 2021

CANADA UNITED STATES

GLOBAL CONSUMER SPENDING

26.7% compound annual growth rate expected from 2017 to 2022.

(Arcview /BDS Analytics)

MEDICAL USE LEGALIZATION

Medical use now legalized in 35 countries and 37 U.S. states. Fourteen years ago the

tally was 6 and 13, respectively.

(Arcview Market Research, "The State of Legal Marijuana Markets 6th Edition", ; medicalmarijuana.)

CBD MARKET Estimated to reach $22 billion hempderived CBD product market in 2022, up

from $627 million in 2018.

(Brightfield)

CANADA

Over a six-fold jump in market value by 2026, up from $1.2 billion in 2018.

(Seaport Securities; Arcview Market Research, "The State of Legal Marijuana Markets, 6th Edition")

U.S. ACCEPTANCE

Public support for legalizing marijuana is now at 62% vs. 31% in 2000.

(Pew Research Center)

JOBS

Estimated 110% increase in US cannabis jobs from 2017-2019.

(Leafly/Whitney Economics)

DISCLOSURES

An investment in the Fund is subject to investment risks, including the possible loss of some or the entire principal amount invested. There can be no assurance that the Fund will be successful in meeting its investment objective. Investment in the Fund is also subject to the following risks: United States Regulatory Risks of the Cannabis Industry, Non-U.S. Regulatory Risks of the Cannabis Industry, Operational Risks of the Cannabis Industry, Securities Lending Risk, Volatility Risk, Small and Mid-Cap Securities Risk, Risks Related to Investing in Canada, COVID-19 Risk, Sampling Risk, Concentration Risk, Valuation Risk, Authorized Participant Risk, Early Close/Trading Halt Risk, Equity Securities Risk, ETF Structure Risks, Foreign Securities Investment Risk, Market Risk, New Advisor Risk, New Fund Risk, Non-Diversification Risk, Passive Investment Risk, and Tracking Error Risk. While the shares of the Fund are tradable on secondary markets, they may not trade in all market conditions and may trade at significant discounts in periods of market stress. ETFs trade like stocks, are subject to investment risks, fluctuate in market value and may trade at prices above or below the ETFs net asset value. The possession and use of marijuana, even for medical purposes, is illegal under federal and certain states' laws, which may negatively impact the value of the Fund's investments. Use of marijuana is regulated by both the federal government and state governments, and state and federal laws regarding marijuana often conflict. Even in those states in which the use of marijuana has been legalized, its possession and use remains a violation of federal law. The companies in which the Fund invests are subject to various laws, regulations and guidelines relating to the manufacture, management, transportation, storage and disposal of cannabis , as well as being subject to laws and regulations relating to health and safety, the conduct of operations and the protection of the environment. Even if a company's operations are permitted under current law, they may not be permitted in the future, in which case such company may not be in a position to carry on its operations in its current locations. Companies involved in marijuana industry face intense competition, may have limited access to the services of banks, may have substantial burdens on company resources due to litigation, complaints or enforcement actions, and are heavily dependent on receiving necessary permits and authorizations to engage in medical marijuana research or to otherwise cultivate, possess, or distribute marijuana. Since the use of marijuana is illegal under United States federal law, federally regulated banking institutions may be unwilling to make financial services available to growers and sellers of marijuana. More information about these risks can be found in the Fund's prospectus. An investor should consider the investment objectives, risks, and charges and expenses of the Fund before investing. The prospectus contains this and other information about the Fund. A copy of the prospectus is available at or by calling Shareholder Services at 800-773-3863. The prospectus should be read carefully before investing. Current and future holdings are subject to change and risk. The Cannabis ETF is distributed by Capital Investment Group, Inc., Member FINRA/SIPC, 100 E. Six Forks Road, Suite 200, Raleigh, North Carolina 27609. There is no affiliation between OBP Capital, LLC, Merlin Asset Management LLC, Innovation Shares LLC, including their principals, and Capital Investment Group, Inc.

RCCAN0821001

Contact 800-773-3863 or visit for more information

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download