The Green Rush Goes High-Tech: New Tokenized Investment Vehicle Seeks To Simplify Cannabis Investing With Blockchain

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by Forbes

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The Green Rush Goes High-Tech: New Tokenized Investment Vehicle Seeks To Simplify Cannabis Investing With Blockchain

Global Cannabis Holdings (GCH) plans to launch the GCH Token, a new investment solution for the cannabis market. GCH owns equity 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 revealed exclusively that the GCH Token will leverage blockchain technology, showcasing a diversified assortment of cannabis businesses worldwide. Consequently, investors will have the chance to profit from the industry's expansion while reducing exposure to individual companies or country-specific risks.

The 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, serving as a Virtual Assets Service Provider (VASP). STOKR's core offering is its ability to provide unparalleled end-to-end tokenization support for financial instruments from institutional-grade investment vehicles in Luxembourg.

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's worth noting that GCH tokens can only be held and traded by verified investors, and STOKR (as a VASP) provides the necessary verification support to GCH. This ensures that GCH knows at any given point in time who the holders of the GCH tokens are, providing added security and high-standard compliance.

It is also crucial to emphasize that the GCH Tokens are not accessible to U.S. persons due to capital market regulations, with the entire process strictly adhering to European Union Capital Market Laws. Due to legal constraints, GCH Tokens can only be issued when a new capital raise is conducted.

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

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

Management explained that the cannabis market is remarkably varied, with applications spanning from medical and recreational uses to industrial functions such as the production of hempcrete, plastics and more. By investing in different verticals within this burgeoning market, GCH can capitalize on opportunities throughout the entire industry, management said.

But, what lies within its companies and projects?

GCH has consistently broadened the number of companies and projects in its portfolio over time, incorporating businesses from diverse countries and verticals of the cannabis industry, after a thorough revision by GCH's investment committee. This approach is meant to enhance GCH's valuation and, as a result, the token's value.

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

It is a GCH belief that is crucial to focus on research and development projects that promote the advancement of medicinal cannabis use. These projects have the potential to significantly improve the quality of life of individuals who suffer from illnesses and disorders that can be treated with cannabis.

"It is important for us to emphasize the significance 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 also promoting corporate social responsibility," said Andres Israel Naor, CEO and co-founder of CGH.

"Therefore, it is critical for the cannabis industry as a whole to prioritize sustainable research and development projects. This way, we can ensure a promising future for medicinal cannabis use, while also fostering social and environmental responsibility in the business sector. Together, we can work towards a more just, prosperous, and sustainable future," he added.

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

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

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