Foothill Capital Management Announces the Cannabis Growth ETF

Rhea-AI Summary

Foothill Capital Management has converted its Cannabis Growth Fund (CANIX) into the Cannabis Growth ETF (BUDX), which will now trade on the NYSE. This change is aimed at providing investors with lower expenses, intraday trading, and improved tax efficiency. The ETF will maintain the same investment objectives, policies, and strategies as the original fund. Foothill focuses on innovative markets, particularly in the cannabis sector, which is experiencing global legalization and robust merger and acquisition activity. Investors are cautioned about the risks involved in this evolving industry.

Positive

• Conversion of Cannabis Growth Fund to Cannabis Growth ETF allows for lower expenses and intraday trading.
• Maintains investment objectives and strategies, providing continuity for investors.
• ETF structure enhances tax efficiency and reduces transaction costs.

Negative

• The cannabis sector is subject to rapidly evolving laws and regulations, which may negatively impact operations.
• Possession and use of cannabis remain illegal under federal law, complicating investment risks.
• Companies in the sector may face significant operational challenges and litigation risks.

GLENDORA, Calif.--(BUSINESS WIRE)-- Foothill Capital Management www.foothillcap.com announced today the conversion of its Cannabis Growth Fund (CANIX), which launched in 2019, into the Cannabis Growth ETF (BUDX) www.cannabisgrowthfunds.com.

The specialized asset manager believes that the new structure could bring investors all the potential benefits of focused exposure to the dynamic and growing scope of cannabis, combined with the accessibility, flexibility and costs of an active ETF.

“We decided to embrace the ETF as we believe it could be the best vehicle to bring investors a product with lower expenses, intraday trading, lower transaction costs and greater tax efficiency,” said Eric Banhazl, Chairman of Foothill Capital.

The Cannabis Growth ETF will be traded on the NYSE^™, and will pursue the identical investment objective, apply the same investment policies and use the same principal investment strategies as the Fund.

About Foothill Capital

Foothill focuses on markets we view as innovative, fast-growing, or emerging to provide investors with an aggressive growth component in their equity portfolios. The Cannabis Growth ETF will provide exposure to a sector undergoing global legalization, expanded medical and recreational use, and robust M&A activity.

Before investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses. This and other information is in the prospectus, a copy of which may be obtained from 888.885.0588. Please read the prospectus carefully before you invest.

Investing involves risk, including possible loss of principal. The cannabis industry is subject to rapidly evolving laws, rules and regulations, and increasing competition which may cause such companies to change business model, shrink or suddenly close. These may limit access to banks, and create significant burdens on company resources due to litigation, enforcement actions, receipt of necessary permits and authorizations to engage in medical cannabis research or to otherwise cultivate, possess or distribute cannabis. Possession and use of cannabis is illegal under federal and certain states’ laws, which may negatively impact the value of Fund investments.

Where legalized by states, cannabis possession and use remains a violation of federal law. The companies in which the Fund invests are subject to various laws and regulations relating to the manufacture, management, transportation, storage and disposal of cannabis, including health and safety, conduct of operations, and environmental protection. Even if a company’s operations are permitted under current law, they may not be permitted in the future, and a company may not be able to continue operations in its current location. Controlled substance legislation differs significantly between countries and may limit a company’s ability to sell products. Please see the prospectus for details of these and other risks.

Distributed by IMST Distributors, LLC. Foothill Capital Management is not affiliated with IMST Distributors.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210927005073/en/

Max Banhazl

Managing Director – Sales and Marketing

1-626-385-5791

max.banhazl@foothillcap.com

Source: Foothill Capital Management

FAQ

What is the Cannabis Growth ETF (BUDX)?

The Cannabis Growth ETF (BUDX) is a new exchange-traded fund launched by Foothill Capital Management, converting from the Cannabis Growth Fund (CANIX) to offer investors lower expenses and improved trading flexibility.

When did the Cannabis Growth Fund convert to the ETF (BUDX)?

The conversion from the Cannabis Growth Fund (CANIX) to the Cannabis Growth ETF (BUDX) was announced on September 27, 2021.

What are the advantages of investing in the Cannabis Growth ETF (BUDX)?

Investing in the Cannabis Growth ETF (BUDX) offers lower expenses, intraday trading, and greater tax efficiency compared to traditional mutual funds.

Where can I trade the Cannabis Growth ETF (BUDX)?

The Cannabis Growth ETF (BUDX) will be traded on the NYSE.

What risks are associated with investing in the Cannabis Growth ETF (BUDX)?

Investing in the Cannabis Growth ETF (BUDX) involves risks such as regulatory changes, federal legality issues, and potential operational challenges for companies in the cannabis sector.