I think you’re referring to the STATES Act which is currently in the process of going through congress. This bill would be the catalyst for true legalization in the US market.
As you mention, once that happens, multi-state operators will streamline their businesses. But we don’t see that as an investment risk, rather it is an opportunity. With legalization, we expect more participants and capital to flood into the market and we see that resulting in a great deal of shareholder value. We want to be there when that happens. Once again, this will be a news driven change which is why we are active.
Alright … one last one on the U.S. …. In your opinion, what are the key drivers to the investment landscape in the U.S. from a legislation perspective?
The SAFE Act will provide nationwide banking services to multi-state operators. We think this is likely because the federal government will want to use banking to exert oversight.
The STATES Act, mentioned above, is the big one because the removal of federal prohibition changes everything. For example, we will see US companies move their listings to the NYSE, increased investment banking coverage, M&A, development of new products and so on.
OK … I am going to backtrack a bit on stating “one last one on the U.S.” because I cannot help but notice that the U.S. ETF had 38 holdings when I looked … what say you to those purists with all of their charts and correlation coefficients and β that in fact you are not over-diversified within one sector …? Yep, no easy questions for you!
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