Bloomberg recently reported that US investors are piling into an exchange-traded fund (ETF) known as ETFMG Alternative Harvest ETF which tracks the Canadian cannabis industry.
This comes as the country moves toward legalisation and liquor producers show growing interest in selling cannabis.
The US-listed $436 million cannabis ETF has taken in about $22 million in August putting it on track for the largest monthly inflow since February.
Alcohol giants teaming up with cannabis companies
This is the biggest deal to date in what is now a fast emerging industry and has played a key role in turning investors’ attention to the industry.
AusCann aims to produce high quality, economical, and clinically validated cannabinoid medicines.
It has a vertically integrated strategy beginning with cultivation and production, through to manufacture and distribution of products.
This is made possible through a number of partnerships with industry leaders such as Canopy Growth Corp and Fundacion Daya.
The company is initially targeting medications for neuropathic and chronic pain in Australia and internationally, a market estimated to be worth $9 billion in Australia alone.
READ: Auscann Group raises more capital, well-funded for manufacturing cannabinoid medicines in Australia
Notably, AusCann raised around $35 million in funding recently through a placement and share purchase plan.
Upcoming ASX Small and Mid-Cap Conference
AusCann will be presenting at the inaugural ASX Small and Mid-Cap Conference being held in Sydney on Thursday, September 6.
To attend the conference, please register here.