Investors are flocking to a U.S.-listed exchange-traded fund (ETF) that tracks nearly 40 Canadian and American cannabis firms.

The $436 million ETFMG Alternative Harvest ETF – which trades on the NYSE Arca under the ticker symbol MJ – has taken in around $22 million in August, putting it in a position to post its largest monthly inflow since February, according to Bloomberg.

Through Tuesday, the fund was the top-performing ETF in August, according to ETF.com.

Of the 38 publicly traded cannabis companies tracked by Alternative Harvest, about 60% are Canadian firms.

Cannabis stocks have been climbing in recent weeks as Canada nears the launch of its recreational market in October and Big Alcohol firms step up their interest and investments in the industry.

In mid-August, Constellation Brands invested $3.8 billion in Smiths Falls, Ontario-based Canopy Growth, which is Alternative Harvest’s largest holding.

Earlier in August, Molson Coors Brewing Co. announced a joint venture to craft a nonalcoholic cannabis-infused beverage with Quebec-based The Hydropothecary Corp.

Meanwhile, United Kingdom-based liquor giant Diageo – maker of Guinness beer and Crown Royal Canadian whisky – is in talks with at least three Canadian cannabis firms, according to Bloomberg.

“We expect more alcoholic beverage companies to announce deals with Canadian (licensed producers) over the course of the year,” Vivien Azer, an analyst with Cowen & Co., wrote in a recent note to clients.

The marijuana industry has been booming for some time now, but one of the largest remaining issues has been the access to basic financial services that any other company would be allowed to have. Although around a dozen or so countries have legalized the use of cannabis nationwide, the recent addition of recreational legalization into the Canadian market will have to be balanced by new regulations in the financial industry.

The bill is officially known as C-45, recently passed with flying colors, meaning that Canadians will now have access to recreational adult-use marijuana nationwide. Prime Minister Trudeau has also stated that the new industry will effectively begin as soon as October 17th, which means that there is a large amount of potential to live up to over the next few months. This new industry has been stated to be able to increase the overall market by as much as $5 billion annually in the near future. Although the industry is growing with a massive amount of potential and backing, it seems as though this basic access to financial needs is one of the biggest issues that has yet to be solved.

Canada has had medical marijuana legalized nationwide since 2001, meaning that they have had time to develop this industry up to this point. Although the government has been in strong favor of the market, businesses in the nation are still often unable to get the financial services that they need to continue operating. One report stated that “recreational weed has been illegal in Canada, financial institutions feared the potential for criminal and/or monetary penalties if they offered banking services — such as a checking account, a line of credit, or a loan — to marijuana-based businesses. This has left most pot stocks to get creative when it came to raising capital because no cannabis company is earning anywhere near enough in positive operating cash flow from medical weed sales and exports to fund broad-based capacity-expansion projects.” Many companies have been looking to grow their businesses, but the traditional methods of using capital from large banks has not been an option. Because of this, many companies have had to find alternative methods to growing their businesses, but it has in no way been an easy feat.

Many companies in the market have chosen to go with the method of something known as a bought-offering. This means that a company will sell common stock, as well as other things to ensure they have enough money to support their growing businesses. These offerings have been extremely successful, but they have also put a large strain on the growth of the market as a whole. Many have feared that these deals will, in turn, dilute stock prices in the near future, but this could be changing as companies could soon have access to these basic financial services that are so necessary.

The passing of the Cannabis Act means that banks are free to offer these basic banking services to cannabis companies without having to fear the national government cracking down on their business. One of the best examples of this has been with Aurora Cannabis (NASDAQOTH:ACBFF). The company recently announced a $150 million deal with the Bank of Montreal, that could allow them to expand greatly.

The industry on cannabis is still very much in its infant stages which means that these issues still need to be figured out before the market can reach its full potential. The hopes are high that companies will begin to have an easier time growing as we move toward the future of the industry.

During the event, RavenQuest will unveil its Orbital Garden technology, “OG 2.0”, which will revolutionize cannabis production. Under RavenQuest’s design Orbital Gardens are stacked three high and two wide, allowing for 500 square feet of grow space inside a 64 square foot footprint, dramatically changing the conversation around square footage as it pertains to cannabis production.

RavenQuest CEO, George Robinson, remarked “As we near completion of Alberta Green Biotech, installation of the OG 2.0 systems into the grow rooms has begun. We are excited to reveal this paradigm shift to the public because it’s so much more than a story of dollars and cents. Certainly, our gardens’ productivity will be more than twice the industry average, will use 80% less power and 50% less water than the old-fashioned “flat table” growing environments. But we believe the real story here is sustainability. Industry wide, Canadian companies are going to be growing a lot of cannabis. With this kind of scale, it’s important we conduct ourselves responsibly and care for the environment”.

“RavenQuest believes strongly in the science of the plant and believes strongly in environmental stewardship. We believe our patients and clients want to see this kind of social responsibility in the products and brands they consume” Robinson continued.

About RavenQuest BioMed Inc.

RavenQuest BioMed Inc. is a diversified publicly traded cannabis company with divisions focused upon cannabis production, management services & consulting and specialized research & development.

RavenQuest is a licensed producer with facilities located in Markham, Ontario and Edmonton, Alberta, whose combined annual production will total 11,000 kg beginning in late 2018.

RavenQuest maintains a research partnership with Montreal’s McGill University focussed upon cultivar (strain) recognition, plant stabilization and yield maximization of the cannabis plant.

The Company focusses on partnerships with Indigenous communities and has announced an MOU to construct a 250,000 square foot cannabis production facility on sovereign land of Fort McMurray First Nation #468. The facility, using RavenQuest’s revolutionary grow methodology, Orbital Garden 2.0, will produce 50,000 kg of cannabis annually.

RavenQuest has also recently announced an LOI to acquire Western Agripharma Ltd., a late stage application with a 125,000 square foot facility under construction on British Columbia’s sunshine coast, a short ferry ride from Vancouver, BC. Upon completion, the facility will produce 25,000 kg of cannabis annually.

On Behalf of the Board of Directors of
RAVENQUEST BIOMED INC.

“George Robinson”
Chief Executive Officer

Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this press release, which has been prepared by management.

Cautionary Note Regarding Forward-Looking Statements

All statements in this press release, other than statements of historical fact, are “forward-looking information” with respect to the Company within the meaning of applicable securities laws, including statements with respect to completion of the Company’s Alberta Green Biotech facility, and the installation of orbital garden systems. The Company provides forward-looking statements for the purpose of conveying information about current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. By its nature, this information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. These risks and uncertainties include but are not limited to those identified and reported in the Company’s public filings under the Company’s SEDAR profile at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise unless required by law.

The marijuana market has continued to show a large amount of promise over the course of the past year or so. With new legislation going into place around North America and the world, it seems as though the cannabis industry is just now getting started.

Momentum during the past week has slowed however throughout the whole stock market given some unfavorable pieces of news, but this looks to be restored in the coming weeks. With Canada legalizing cannabis for recreational use nationwide, it seems as though there will continue to be a bright future ahead for the cannabis industry.

In recent news, the company Constellation Brands (NYSE:STZ) has continued to work with Canopy Growth Corporation (NYSE:CGC) after securing an almost 10% stake in the company towards the end of last year.

One of the cannabis stocks that is continuing to show a large amount of promise in the industry is Aurora Cannabis (OTCMKTS: ACBFF). The company has stated that they will begin talking to the U.S. company Molson Coors on how they can help to distribute their product throughout the country. Aurora has recently completed a round of acquisitions which has helped their growth in a market that currently is valued at around $5-9 billion. When adding in the ancillary industries of packaging, growers and so on, the industry has been valued at almost $14 billion more than that amount. Canada has continued to lead the fight on cannabis throughout the world, and Aurora is just another example of this taking place.

Canopy Growth (NYSE:CGC) has been another one of the largest players in the Canadian market and the cannabis market overall. The company has been securing their future in the industry as of recent by applying for over 40 new patents that would help them to continue producing more products for the market. With greenhouse facilities totaling at over one million square feet, the company has also been one of the first cannabis companies to take advantage of the online space, by giving customers a way to purchase their products online. The company has also reported a growth in the amount of patients totaling as much as 138% more than last year during the same time period.

The company GW Pharmaceuticals (NASDAQ:GWPH) has also been at the forefront of growth in the industry for some time now, as their recent approval of the drug Epidiolex, has helped to change the entirety of the cannabis industry in relation to pharmaceuticals. GW Pharmaceuticals has been undoubtedly leading the pharmaceutical side of the market, and with the approval of the new drug mentioned above, they have helped to open the marijuana industry up to positive legislation from the federal government in the U.S. The drug that they have produced has been one of the most promising cannabis-related drugs in the industry, helping those two years or older struggling with a variety of ailments from seizures to other related conditions. GW Pharmaceuticals continues to be an interesting stock to watch for the future of the industry.

The cannabis market is still very much in its infant stages which means that there is a large amount of room to grow for the future. The hopes are high that the companies mentioned above will continue to provide a backbone for growth throughout the industry as it is able to reach its full potential in the coming years. Only time will tell how the mix of new legislation and the changing public sentiment will help to push the industry into the future.