Cannabis News
What Does the Shutting Down of the AdvisorShares Cannabis ETF Investment Fund Say About the Future of the Marijuana Industry?
Poseidon Cannabis ETf To Shut Down Less Than 2 Years After Launching
The impact of the failure of cannabis reform at the U.S. federal level extends beyond the scope of retail and cultivation operators in the industry. As investor enthusiasm wanes for the legally restricted cannabis sector, a prominent cannabis exchange-traded fund is set to cease operations.
As CNBC reported, AdvisorShares, the largest manager of cannabis funds, has announced that its Poseidon Dynamic Cannabis ETF will end its trading on August 25. The Fund will liquidate its assets and distribute payments to shareholders on September 1. This information has been provided through a notification on the Fund’s official website.
The investment advisor for the AdvisorShares Trust series, the Board of Trustees of the Trust, has sanctioned the liquidation of the Fund in line with a predetermined Liquidation Plan. This is according to an Addition Information Statement dated August 8, 2023, and acting upon the recommendation of AdvisorShares Investments, LLC.
The final trading day for Fund shares on the NYSE Arca, Inc. is set for August 25, 2023, and the complete closure of the Fund is slated for September 1. During the period between the last trading day and the Liquidation Date, shareholders will not have the ability to buy or sell shares on the secondary market.
However, all is not lost for investors already holding shares in the Fund at its closure.
After the Liquidation Date, the Fund will distribute cash to its remaining investors, equivalent to the net asset value of their holdings as of the close of business on the Liquidation Date. This amount will encompass any accrued capital gains and dividends. Investors who maintain their position in the Fund until the Liquidation Date will not face any transaction fees from the Fund.
The cash distribution provided to shareholders throughout the liquidation process will be regarded as compensation for their shares.
The Fund, established by siblings Emily & Morgan Paxhia, was launched on the New York Stock Exchange in November 2021, a time marked by a surge in cannabis sales due to the pandemic. However, the Fund’s closure comes as investor interest in the quasi-legal cannabis sector diminishes. This sector has encountered challenges in achieving significant growth, with declining wholesale prices and a lack of federal legal reform by Congress hindering its expansion.
In a statement sent via email to CNBC, Morgan Paxhia, one of the co-founders, acknowledged that the fund was not impervious to the broader macro-economic landscape and, more notably, the significant shift in investor sentiment that has profoundly affected the cannabis sector.
Even though nearly half of the U.S. states have legalized adult recreational cannabis usage, its federal illegality remains. Its classification as a Schedule I substance, equivalent to heroin and LSD, has prevented the industry from accessing the majority of banking services and from engaging in interstate trade. This situation has led to excess cannabis in numerous states and a subsequent price decline.
The decline in equity values has prompted investors to distance themselves from the industry, resulting in a shortage of capital.
The Fate of Poseidon Dynamic Cannabis Deteriorates with Falling Equity Values
Amid the seemingly endless postponements of federal cannabis reform, U.S. cannabis equities are entrenched in an extended bear market. Consequently, these circumstances have severely hindered Poseidon’s capacity to yield a satisfactory profit, ultimately causing it to fall victim to political stagnation.
Poseidon Investment Management was established in 2013 as one of the earliest hedge funds focused on cannabis. Since then, it has witnessed its ETF experience a substantial decrease of approximately 74% in value, in contrast to a mere 1.7% dip in the S&P 500.
With a management fee of 0.80%, the Fund’s profit generation is notably limited relative to the remaining assets under management, totaling just $2,912,951.84. Although the Fund never attained the size and popularity comparable to AdvisorShares Pure U.S. Cannabis ETF (MSOS), the current management fee is likely inadequate to cover operational expenses. Given the uncertain outlook for U.S. reform in the upcoming election year, the decision to cease operations might have been prudent.
Does that mean there is no hope for the future of cannabis investing? Marijuana businesses today are closing for a varitey of reasons, but an investment fund usually has a 3 to 5 year outlook. One problem with this fund closing is that it is basically a statement that “the 3 to 5 year look ahead to make a decent return is just not there”, better to put your money in other stocks or assets to make money for the next 5 years. Another problem that is known by industy insiders is that while big “sales” headlines create nice headlines, profits remain elusive for almost 75% of cannabis businesses in America according to Whitney Economics.
Big sales numbers by state are flashy, but if there is hardlyl any profits, well that is a business problem, not a sales problem. The gray and black market that does not have to pay sales tax, licensing fees, or be subject to 240E federal taxation codes is taking that margin and becoming profitable, while legal marijuana businesses cannont do that. The margin lies in those onerous restrictions, hence great sales numbers, but no profits to speak of at this point.
Ultimately, the progress of the cannabis industry equities has been significantly hindered by the reluctance of Washington, D.C., to take action. Whether the unsuccessful CAOA initiative led by Chuck Schumer or the repeated failure to pass SAFE Banking despite House approval on seven occasions.
The act aims to provide legal protection to financial institutions that offer services to state-legal cannabis businesses. However, its repeated failure to pass the Senate has left the marijuana industry and related companies without access to traditional banking services.
It’s now evident that the lack of advancement has had huge repercussions. While many equities have experienced declines, Poseidon has found itself as a confirmed casualty.
In the same timeframe, the Pure US Cannabis ETF, another fund within the industry managed by AdvisorShares, experienced a significant drop of approximately 60%. Poseidon has now become the most recent victim in an industry grappling with the pressures of market dynamics and economic policies.
The preceding month, a merger valued at $2 billion between cannabis multistate operators Cresco Labs and Columbia Care disintegrated over a year after the initial acquisition announcement. Additionally, Mastercard, in a move that further isolates the cannabis industry from mainstream banking, revealed its decision last month to halt cannabis transactions on its debit cards to adhere to federal law.
Conclusion
The cannabis industry is at a pivotal juncture where uncertain regulations, volatile market dynamics, and constrained financial options shape its landscape. The difficulties faced by funds like Poseidon and the broader industry illustrate the intricate interplay between political decisions, economic forces, and legal constraints that steer its evolution. These challenges serve as a stark reminder of the imperative to navigate these multifaceted elements astutely to ensure a trajectory of sustained growth and accomplishment.
As stakeholders grapple with these complexities, it becomes increasingly evident that achieving equilibrium amid divergent factors holds the key to cultivating a resilient and flourishing cannabis sector. The path forward demands careful consideration of evolving legislative climates, adept responses to market fluctuations, and innovative financial strategies. The industry can overcome these hurdles through proactive and strategic measures, paving the way for a more stable and prosperous future.
THE BLEAK FUTURE OF LEGAL WEED, READ ON…
THE MAJORITY OF CANNABIS COMPANIES DON’T MAKE IN ANY PROFITS!
“How Long Does One Puff of Weed Stay in Your System?”… This topic can be difficult to answer since it is dependent on elements such as the size of the hit and what constitutes a “one hit.” If you take a large bong pull then cough, it might linger in your system for 5-7 days. A moderate dose from a joint can last 3-5 days, whereas a few hits from a vaporizer may last 1-3 days.
The length of time that marijuana stays in the body varies based on a number of factors, including metabolism, THC levels, frequency of use, and hydration.
Delta-9-tetrahydrocannabinol, or THC, is the primary psychoactive component of cannabis. THC and its metabolites, which remain in your body long after the effects have subsided, are detected by drug tests.
Since these metabolites are fat-soluble, they cling to bodily fat molecules. They could thus take a while to fully pass through your system, particularly if your body fat percentage is higher.
THC is absorbed by tissues and organs (including the brain, heart, and fat) and converted by the liver into chemicals such as 11-hydroxy-THC and carboxy-THC. Cannabis is eliminated in feces at a rate of around 65%, while urine accounts for 20%. The leftover amount might be kept within the body.
THC deposited in bodily tissues ultimately re-enters the circulation and is processed by the liver. For frequent users, THC accumulates in fatty tissues quicker than it can be removed, thus it may be detectable in drug tests for days or weeks following consumption.
The detection time varies according to the amount and frequency of cannabis usage. Higher dosages and regular usage result in longer detection times.
The type of drug test also affects detection windows. Blood and saliva tests typically detect cannabis metabolites for shorter periods, while urine and hair samples can reveal use for weeks or even months. In some cases, hair tests have detected cannabis use over 90 days after consumption.
Detection Windows for Various Cannabis Drug Tests
Urine Tests
Among all drug tests, urine testing is the most commonly used method for screening for drug use in an individual.
Detection times vary, but a 2017 review suggests the following windows for cannabis in urine after last use:
– Single-use (e.g., one joint): up to 3 days
– Moderate use (around 4 times a week): 5–7 days
– Chronic use (daily): 10–15 days
– Chronic heavy use (multiple times daily): over 30 days
Blood Tests
Blood tests generally detect recent cannabis use, typically within 2–12 hours after consumption. However, in cases of heavy use, cannabis has been detected up to 30 days later. Chronic heavy use can extend the detection period in the bloodstream.
Saliva Tests
THC can enter saliva through secondhand cannabis smoke, but THC metabolites are only present if you’ve personally smoked or ingested cannabis.
Saliva testing has a short detection window and can sometimes identify cannabis use on the same day. A 2020 review found that THC was detectable in the saliva of frequent users for up to 72 hours after use, and it may remain in saliva longer than in blood following recent use.
In areas where cannabis is illegal, saliva testing is often used for roadside screenings.
Hair Tests
Hair follicle tests can detect cannabis use for up to 90 days. After use, cannabinoids reach the hair follicles through small blood vessels and from sebum and sweat surrounding the hair.
Hair grows at approximately 0.5 inches per month, so a 1.5-inch segment of hair close to the scalp can reveal cannabis use over the past three months.
Factors Affecting THC and Metabolite Retention
The length of time THC and its metabolites stay in your system depends on various factors. Some, like body mass index (BMI) and metabolic rate, relate to individual body processing, not the drug itself.
Other factors are specific to cannabis use, including:
– Dosage: How much you consume
– Frequency: How often you use cannabis
– Method of consumption: Smoking, dabbing, edibles, or sublingual
– THC potency: Higher potency can extend detection time
Higher doses and more frequent use generally extend THC retention. Cannabis consumed orally may remain in the system slightly longer than smoked cannabis, and stronger cannabis strains, higher in THC, may also stay detectable for a longer period.
How Quickly Do the Effects of Cannabis Set In?
When smoking cannabis, effects appear almost immediately, while ingested cannabis may take 1–3 hours to peak.
The psychoactive component THC produces a “high” with common effects such as:
– Altered senses, including perception of time
– Mood changes
– Difficulty with thinking and problem-solving
– Impaired memory
Other short-term effects can include:
– Anxiety and confusion
– Decreased coordination
– Dry mouth and eyes
– Nausea or lightheadedness
– Trouble focusing
– Increased appetite
– Rapid heart rate
– Restlessness and sleepiness
In rare cases, high doses may lead to hallucinations, delusions, or acute psychosis.
Regular cannabis use may have additional mental and physical effects. While research is ongoing, cannabis use may increase the risk of:
– Cognitive issues like memory loss
– Cardiovascular problems including heart disease and stroke
– Respiratory illnesses such as bronchitis or lung infections
– Mood disorders like depression and anxiety
Cannabis use during pregnancy can negatively impact fetal growth and development.
Duration of Effects
Short-term effects generally taper off within 1–3 hours, but for chronic users, some long-term effects may last days, weeks, or even months. Certain effects may even be permanent.
Bottom Line
The amount of time that cannabis remains in your system following a single use varies greatly depending on individual characteristics such as body fat, metabolism, frequency of use, and mode of intake. Frequent users may maintain traces of THC for weeks, whereas infrequent users may test positive for as little as a few days. Hair tests can disclose usage for up to 90 days, while blood and saliva tests identify more recent use. Urine tests are the most popular and have varying detection durations. The duration that THC and its metabolites are detectable will ultimately depend on a number of factors, including dose, strength, and individual body chemistry.
PEE IN A CUP COMING UP, READ ON..
Is kratom addictive? Discover the potential for dependence on Kratom, the risks involved with its use, and how to approach its consumption responsibly.
From 2011 to 2017, over 1,800 calls to poison centers involved kratom in the U.S. This significant number highlights the concern regarding kratom addiction.
However, without Food and Drug Administration (FDA) oversight, and due to various consumption methods like teas and capsules, there are significant health risks. Safe use of kratom is now in question due to these issues.
Research debates how dependence develops, outlining signs like loss of control and withdrawal symptoms. These signs are seen in regular kratom users. Ironically, some people switch from drugs like heroin to kratom, looking for a legal alternative.
Understanding Kratom: Origins and Prevalence
Kratom comes from the Mitragyna speciosa tree in Southeast Asia. It can act like a stimulant or like opioids, based on how much you take. People use it in different ways, for a small energy boost or stronger effects at higher doses.
The legal status of kratom in the U.S. is complicated and changing. It’s a hot topic because some worry about its misuse. It’s still legal in several states. This shows how different places handle drug rules. The National Institute on Drug Abuse is looking into its medical benefits. But, the FDA hasn’t approved it for medical use yet. The DEA calls it a “drug of concern,” which means policies might change.
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From 2011 to 2017, poison control centers in the U.S. got over 1,800 reports about kratom. This shows it’s widely used and might pose health risks.
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Kratom’s main ingredients bind to opioid receptors very strongly, stronger than morphine even. This fact is key to understanding its effects.
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As more people use kratom, more are reporting serious health problems. These include liver and heart issues, and tough withdrawal symptoms, particularly in those already sick.
The statistics show mounting worries about kratom in the U.S. As its use grows, it’s becoming more important to health policies and laws. What happens next will depend on further research and legal decisions.
Is Kratom Addictive: Investigating the Substance’s Nature
The question of kratom’s addictiveness focuses on how it affects brain receptors and its long-term health implications. The ongoing debate highlights concerns about dependence and the risk of addiction. Scientists are closely looking at these issues.
How Kratom Works in the Brain
Kratom’s main alkaloids, mitragynine and 7-hydroxymitragynine, bind to the brain’s opioid receptors, similar to painkillers and narcotics. This connection suggests a potential risk of dependence. These alkaloids are key to kratom’s pain relief but also point to possible addiction concerns, especially with frequent, high-dose usage.
Patterns and Consequences of Long-term Use
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Using kratom often, especially in large doses, can increase the risk of dependence and intense withdrawal symptoms, similar to opioid withdrawal.
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Although some use it for pain or to improve mood, long-term kratom users might see serious health problems, like liver damage and mental health issues.
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Withdrawal symptoms, including irritability, nausea, and sleep problems, show kratom’s impact on one’s physical and mental health.
Assessment of Addiction Risks
Studies indicate a significant risk of addiction to kratom, especially with high doses or frequent use. Dependence develops as the body gets used to kratom, leading to tolerance and a need for more to feel its effects. Withdrawal symptoms emphasize this risk, as highlighted by health experts.
Physiological Effects: Kratom’s Impact on the Body
There is a lot of debate about the safety and use of kratom. This herbal extract comes from the Mitragyna speciosa plant. It has drawn attention for its possible harmful effects on the body. The FDA has issued many warnings about kratom, raising safety concerns.
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Kratom Adverse Effects: Kratom users have reported side effects like nausea, vomiting, and confusion. More serious issues include high blood pressure and liver damage. These problems highlight the risks of using kratom.
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Herbal Extract Safety: Some kratom products contain heavy metals and pathogens. These can cause severe health issues, including death. This shows the importance of safety in herbal products.
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FDA Warnings and Regulations: The FDA has linked kratom to over 35 deaths and warns against using it. They point out the lack of medical uses and the risk of addiction.
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Physiological Impact: Kratom’s effects depend on the dose and the user’s body. Yet, it can lead to dangerous outcomes like liver damage and seizures.
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Safety Concerns from Authorities: Federal agencies like the DEA are worried about kratom’s safety. Although not a controlled substance, monitoring suggests users should be careful.
Kratom might offer temporary relief for some ailments, but it comes with significant risks. The FDA’s warnings should make people think twice. If considering kratom, it’s crucial to talk to a doctor first. Experts stress the need for safety and caution with herbal extracts.
Conclusion
Kratom’s role in health and regulation is complex, with views and research findings widely varied. Some people use kratom for its claimed health benefits, but it’s a hot topic. Experts advise caution and suggest consulting a doctor before using kratom due to the unclear effects.
Clinical studies using scores like SOWS and COWS haven’t confirmed withdrawal symptoms from kratom. This adds to the debate, especially when some users report withdrawal. This makes kratom a controversial subject among different findings and user experiences.
When it comes to treating opioid addiction, kratom can be both helpful and harmful. Some have used it successfully to fight addiction. Yet, some states have banned it. This highlights the need for regulations and consistent product quality. It also raises questions about kratom’s legal status due to mixed actions by authorities.
The situation shows how complex kratom is in the realm of substance use and law. Without clear evidence supporting either its benefits or risks, it poses a challenge. More research is needed to guide regulations and health advice. For now, anyone thinking of using kratom should be careful, seek medical advice, and keep up with laws and health guidelines.
WHAT IS KRATOM ANYWAY? READ ON…
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