AdvisorShares says its fund custodian has approved direct ownership of Glass House Brands stock, a move the firm says could lower derivative-related costs for shareholders following the company’s NYSE uplisting.
In a post Monday, AdvisorShares said it has approval from the fund custodian to hold Glass House Brands directly under its new ticker symbol, GLAS. The firm said the official policy is expected to be updated shortly.
AdvisorShares called the development a “big deal” for the cannabis industry, while noting that relative to the fund itself, the change is “not material.” The firm said the benefit would come from saving on derivative costs for shareholders.
The statement came the same day Glass House Brands began trading on the New York Stock Exchange under the symbol GLAS. The company announced last week that its subordinate voting shares had been approved for listing on the NYSE, with trading expected to begin at the opening of markets on June 30.
AdvisorShares operates the AdvisorShares Pure US Cannabis ETF, or MSOS, which it describes as the first actively managed U.S.-listed ETF with dedicated cannabis exposure focused exclusively on U.S. companies, including multistate operators. The fund trades on NYSE Arca and is designed to give investors access to U.S. cannabis companies through a single investment vehicle.
As of June 29, AdvisorShares listed Glass House Brands as one of MSOS’ largest holdings, with a market value of about $92 million and a 9.30% portfolio weight. The holding was listed with a “TW” asset group designation, while the fund page notes that some swap and equity positions may be combined in the holdings table and directs investors to the full holdings file for swap versus direct stock exposure.
For the cannabis industry, the development is notable because it suggests that at least some custodial barriers may be easing for companies able to list on major U.S. exchanges. For MSOS shareholders, AdvisorShares says the direct holding approval could reduce derivative costs tied to Glass House exposure.
Glass House is a California-focused cannabis company with brands including Glass House Farms, PLUS Products, Allswell and Mama Sue Wellness. In announcing the NYSE approval, CEO Kyle Kazan called the listing an important milestone for the company, its shareholders and the broader cannabis industry.
