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A New Way To Invest In Cannabis? Tokenized Investment Vehicle Seeks To Simplify Weed Investing With Blockchain Tech

Published 19/04/2023, 17:52
© Reuters.  A New Way To Invest In Cannabis? Tokenized Investment Vehicle Seeks To Simplify Weed Investing With Blockchain Tech

Benzinga - Global Cannabis Holdings (GCH) is set to launch the GCH Token, a novel investment solution for the cannabis market. GCH holds equity stakes in 38 industry companies and projects, and aims to provide investors an easy and affordable entry into the global cannabis market through this tokenized investment instrument.

The company told Benzinga that the GCH Token will utilize blockchain technology to showcase a diversified array of cannabis businesses worldwide. This will allow investors to profit from the industry's growth while minimizing exposure to individual companies or country-specific risks.

The Compliance Aspect GCH Tokens will be issued on STOKR, a leading primary issuance platform for digital securities. STOKR, established in 2018 and supervised by Luxembourg's CSSF (financial services regulator), serves as a Virtual Assets Service Provider (VASP). Its core offering includes providing end-to-end tokenization support for financial instruments from institutional-grade investment vehicles in Luxembourg.

STOKR's advanced infrastructure and expertise have enabled GCH to issue tokenized securities on the Liquid Network, a Bitcoin sidechain offering faster transaction speeds and lower fees compared to the main Bitcoin (CRYPTO: BTC) network or Ethereum (CRYPTO: ETH).

It is important to note that only verified investors can hold and trade GCH tokens. STOKR, as a VASP, offers the necessary verification support to GCH, ensuring that GCH knows the token holders at any given time for added security and compliance.

GCH Tokens are not accessible to U.S. persons due to capital market regulations, and the entire process adheres strictly to European Union Capital Market Laws. Legal constraints dictate that GCH Tokens can only be issued during a new capital raise.

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The GCH Token's primary advantage, according to the team, is its diversified set of companies covering every main vertical in the cannabis sector. Companies and projects are selected early on based on their potential.

The Investment Criteria GCH prioritizes projects with scientific and transformative impact beyond solely productive aspects. A committee of experts, including start-up world actors specializing in medical and scientific cannabis, selects these projects.

Management highlights the cannabis market's diversity, with applications ranging from medical and recreational uses to industrial purposes such as hempcrete and plastics production. By investing in various industry verticals, GCH can capitalize on opportunities throughout the market.

GCH has steadily expanded its portfolio of companies and projects from diverse countries and industry verticals. After thorough review by GCH's investment committee, this approach aims to boost GCH's valuation and, subsequently, the token's value.

All companies in GCH's holdings possess the necessary licenses to operate in the industry, and a significant number have already reached post-revenue stages.

GCH emphasizes the importance of focusing on research and development projects that advance medicinal cannabis use, as they have the potential to greatly enhance the quality of life for individuals with treatable illnesses and disorders.

Andres Israel Naor, CEO and co-founder of CGH, stressed the importance of sustainable projects, stating that prioritizing sustainability ensures efficient initiatives with minimal environmental impact, while promoting corporate social responsibility.

Naor added that prioritizing sustainable research and development projects is crucial for the cannabis industry to ensure a promising future for medicinal cannabis use, as well as social and environmental responsibility in the business sector. This collaborative approach can work towards a more just, prosperous, and sustainable future.

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More information about companies and projects is anticipated to be released soon.

By leveraging blockchain technology to tokenize its holding company's equity, GCH aims to offer enhanced liquidity, accessibility, and transparency for investors. Stay tuned for more updates on this and other news from the cannabis space.

© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Read the original article on Benzinga

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