New tokenized investment vehicle seeks to simplify cannabis investments with blockchain

New tokenized investment vehicle seeks to simplify cannabis investments with blockchain

Global Cannabis Holdings (GCH) plans to launch GCH Token, a new investment solution for the cannabis market. GCH owns stakes in 38 companies and projects in the industry and aims to make it easy and affordable for investors to enter the global cannabis market using this new tokenized investment instrument.

Ahead of the official announcement, sources have exclusively revealed that the GCH Token will utilize blockchain technology, showcasing a diverse range of cannabis businesses worldwide. Consequently, investors will have the chance to profit from the industry’s expansion while reducing exposure to individual company or country-specific risks.

The compliance aspect

GCH tokens will be issued on STOKR, the leading primary issuance platform for digital securities. Established in 2018, STOKR operates under the supervision of the CSSF (financial services regulator) in Luxembourg, and acts as a Virtual Assets Service Provider (VASP). STOKR’s core offering is its ability to provide unmatched end-to-end tokenization support for financial instruments from institutional investment vehicles in Luxembourg.

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Through its advanced infrastructure and expertise, STOKR has enabled GCH to issue tokenized securities on the Liquid Network, a Bitcoin sidechain that offers faster transaction speeds and lower fees than the main Bitcoin network or Ethereum.

It is worth noting that GCH tokens can only be held and traded by verified investors, and STOKR (as a VASP) provides the necessary verification support for GCH. This ensures that GCH knows at all times who the holders of the GCH tokens are, which provides additional security and high standard compliance.

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It is also crucial to emphasize that the GCH tokens are not available to US persons due to capital market regulations, with the entire process strictly adhering to EU capital market laws. Due to legal restrictions, GCH tokens can only be issued when a new capital raising is carried out.

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GCH Token’s primary advantage, as explained by the team, lies in its diversified set of companies, which seek to cover all the main verticals of the cannabis sector. These companies and projects are selected at an early stage and according to their potential.

The investment criteria

GCH aims to prioritize these projects with scientific and transformative impact, beyond strictly productive angles. These projects have been selected by a committee of experts, composed of actors from the start-up world, specialized in cannabis from a medical and scientific perspective.

Management explained that the cannabis market is remarkably diverse, with uses ranging from medical and recreational uses to industrial functions such as the production of hemp concrete, plastics and more. By investing in different verticals within this burgeoning market, GCH can capitalize on opportunities across the industry, management said.

But what lies in its companies and projects?

GCH has consistently expanded the number of companies and projects in its portfolio over time, with businesses from different countries and verticals within the cannabis industry, following a thorough review by GCH’s Investment Committee. This approach is intended to improve GCH’s valuation and, as a result, the token’s value.

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All the companies included in GCH’s stake have the necessary licenses to operate within this industry, and a significant number of them have already reached post-revenue stages.

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It is a GCH view that it is essential to focus on research and development projects that advance the development of medical cannabis use. These projects have the potential to significantly improve the quality of life of individuals suffering from diseases and disorders that can be treated with cannabis.

– It is important for us to emphasize the importance of sustainable projects. By prioritizing sustainability, we ensure that our initiatives are designed efficiently and in a way that minimizes their impact on the environment, while promoting corporate social responsibility, says Andres Israel Naor, CEO and co-founder of CGH.

“Therefore, it is crucial for the cannabis industry as a whole to prioritize sustainable research and development projects. In this way, we can ensure a promising future for medical cannabis use, while at the same time promoting social and environmental responsibility in the business world. Together, we can work towards a fairer, prosperous and sustainable future, he added.

Additional information on companies and projects is expected to be released soon.

By leveraging blockchain technology to tokenize the holding company’s equity, GCH aims to offer improved liquidity, accessibility and transparency to investors. Keep an eye on this space for more updates on this and other news from the cannabis space.

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