This article was originally published on ETFTrends.com.
The ETFMG Alternative Harvest ETF (MJ) gained 0.82 percent on Wednesday after it was revealed that one of its holdings, Aurora Cannabis, scored billionaire activist investor Nelson Peltz who will serve in a strategic advisory role for the company.
According to an Aurora press release, Peltz will "work collaboratively and strategically to explore potential partnerships that would be the optimal strategic fit for successful entry into each of Aurora's contemplated market segments."
Shares of Aurora went as high as 12 percent following the news. Peltz was given the option to purchase almost $20 million worth of Aurora shares at a price of $7.74 per share--if exercised, it would make him the second largest shareholder.
"I believe Aurora has a solid execution track record, is strongly differentiated from its peers, has achieved integration throughout the value chain and is poised to go to the next level across a range of industry verticals," Peltz said in the release. "I also believe that Canadian licensed producers, and Aurora in particular, are well positioned to lead in the development of the international cannabis industry as regulations evolve, with a strong, globally replicable operating model."
Peltz brings with him valuable experience in the consumer goods industry that includes serving as CEO for New York-based Trian Partners. Peltz is renown in financial circles for his investing prowess that includes taking undervalued companies and pushing them to their profitability limits.
Related: ETFs, ETPs Gathered $44.31B in Inflows Globally During February
Legal Marijuana on Jersey Shores?
Cannabis companies got a boost on Tuesday after New Jersey politicians revealed plans to legalize the recreational use of marijuana in the state.
Democratic Governor Phil Murphy announced a bill that would allow for the adult-use of marijuana as well as allow municipalities that are home to a cultivator or manufacturer to collect the revenue from a 2 percent tax on the product within their jurisdiction.
"Legalizing adult-use marijuana is a monumental step to reducing disparities in our criminal justice system," Murphy said in a press release. "After months of hard work and thoughtful negotiations, I'm thrilled to announce an agreement with my partners in the Legislature on the broad outlines of adult-use marijuana legislation."
Assembly Speaker Craig Coughlin said March 25 was a “good target date" in terms of bringing the bill to the state Legislature for vote.
“But I think it’s most important that we get this right," the Assembly speaker said. "We’re doing something that’s a seismic shift in public policy and we’re creating a new industry. I think that demands we get both of those things right.â€
If the bill passes and becomes law in New Jersey, the state's adult-use marijuana market would come under regulation by the Cannabis Regulatory Commission, which consists of five members appointed by the governor. The commission will have the authority to promote regulations and oversee licensing applications.
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