When the world gets closer.

We help you see farther.

Sign up to our expressly international daily newsletter.

Already a subscriber? Log in .

You've reached your limit of one free article.

Get unlimited access to Worldcrunch

You can cancel anytime .


Exclusive International news coverage

Ad-free experience NEW

Weekly digital Magazine NEW

9 daily & weekly Newsletters

Access to Worldcrunch archives

Free trial

30-days free access, then $2.90
per month.

Annual Access BEST VALUE

$19.90 per year, save $14.90 compared to monthly billing.save $14.90.

Subscribe to Worldcrunch

Crypto And Cannabis, Best Buds At Last

As cannabis is legalized in more places, investors are taking note. One Luxembourg-based, Uruguayan-led fund has found an innovative way to bypass banking obstacles and raise capital.

A jar of weed

Marijuana is the most commonly used addictive drug after tobacco and alcohol, according to the U.S. National Institute on Drug Abuse.

Natalia Vera Ramírez

Soon it will be possible to buy shares in a fund that invests in the nascent cannabis industry, on Ethereum, a blockchain portal. The fund is Global Cannabis Capital (GCC), formed in Luxembourg and soon to offer shares as tokens (digital value units representing the value of a stock), instead of the traditional initial public offering (IPO).

GCC's founder is the Uruguayan Andrés Israel, also CEO and founder of Cannabis Company Builder (CCB), an incubator that helps Latin American startups devise a business strategy for the cannabis sector. He said tokens were "a much more efficient channel for attracting capital" than share issues, and legal frameworks already exist covering their use. The legalities, he said, were "one of our major challenges. We chose Luxembourg as we found legality both in the blockchain sphere and the cannabis industry. It was a double challenge for us."

GCC has 30 firms in its portfolio and aims to raise capital through token sales whose proceeds are to be reinvested in its portfolio. The main objective, said Israel, is to "do it in a diversified manner, both in the various verticals of the cannabis industry and in different world markets, and put together an absolutely diversified portfolio. Our projection is to have 60 firms in the portfolio by mid-2023, before floating Global Cannabis Capital on the Luxembourg stock market. It can either be a public firm in that country or our token can become an index or an ETF (Exchange-Traded Fund) of the cannabis industry."

Blockchain to fund growth

The first sale, scheduled for early June, is a private placement, so GCC could not reveal the price of a token or the sums expected to be raised. But investors were showing keen interest. "Before this we held a pre-sale in which all our tokens were sold in 10 days. This is highly auspicious, as we expected to end the pre-sale in June," Israel said.

Some 50 investors bought all available tokens and for 80% of them, this was their first investment in a cryptocurrency or in digital assets.

Israel explained that a token gave you a stake in GCC and its value was backed by GCC's portfolio valuation, which was in keeping with its stake in other firms in the sector. He said that all money raised by token sales was reinvested to boost the GCC portfolio — and every token's value. "What I can say is that the firm's valuation is currently at $25 million," he said.

The firm will create 100,000 tokens, which will be its entire stock capital, to be offered in stages over three years before the fund's listing on the Luxembourg stock exchange. The first private placement will sell off 6% of all tokens.

A woman checking cannabis plants.

Cannabis can be grown for medicinal purposes, like in this facility in Ecuador.

David Diaz Arcos/dpa/ZUMA

Solution to banking obstacles

Using tokens or crypto-assets is an increasingly common way of raising capital in the cannabis sector. In addition to legal restrictions on cannabis in many countries, which hinders public listings or more traditional fundraising, many actors in the sector see blockchain technology as a faster financing instrument.

A much more liquid model.

For buyers, says Israel, tokens also open the way to a secondary market for resale, giving their assets liquidity. "Funds generally need five to seven years for limited partners to recoup their investment. We have a much more liquid model because through our technology, once investors acquire the token, they can sell them on the secondary market. It is very important for us to generate a large volume of investors, because we are generating this secondary market and need big numbers," he said.

In parallel with GCC, the incubator firm CCB is working on industry projects not yet mature enough to receive capital. Its focus is on finding projects relating to research and development, genetics, final products, branding and in brand creation both in the cosmetics and pharmaceutical sectors. CCB currently has seven cultivation projects of this type, limited to Latin America.

GCC on other hand is aiming for global-level investment. Israel says: "We're going to diversify the geography to invest in Canada, California, Colombia and Switzerland. We'll go to more advanced countries in terms of legislation. We want to be a push factor as cannabis firms currently have a financing problem. Most venture capital firms do not invest in cannabis startups, simply because at the federal level it is not yet legal in the United States. There are banking obstacles that are a break on the industry, and we're trying to lift that with GCC."

You've reached your limit of free articles.

To read the full story, start your free trial today.

Get unlimited access. Cancel anytime.

Exclusive coverage from the world's top sources, in English for the first time.

Insights from the widest range of perspectives, languages and countries.

food / travel

Pasta v. Fascists: How Italy's Staple Dish Became A Symbol Of Resistance

Pasta may not be considered controversial today, but it played an important role during Italy's fascist years, particularly in one family's celebration of community and liberation.

Photo of the Cervi family.

Photo of the Cervi family, whose seven children were shot by the Fascists on December 28, 1943, at the Reggio Emilia shooting range.

@comunisti_alla_ribalta via Instagram
Jacopo Fontaneto

ROME — Eighty years ago — on July 25, 1943 — the vote of no confidence by the Grand Council of Fascism, leading to Benito Mussolini's arrest, set off widespread celebrations. In Campegine, a small village in the Emilian province, the Cervi family celebrated in their own way: they brought 380 kilograms of pasta in milk cans to the town square and offered it to all the inhabitants of the village.

The pasta was strictly plain: macaroni dressed with butter and cheese, seen as more of a "festive dish" in that period of deprivation. As soon as the Cervi brothers learned about the arrest of Mussolini, they procured flour, borrowed butter and cheese from the dairy, and prepared kilos and kilos of pasta. They then loaded it onto a cart to distribute it to their fellow villagers. Pastasciutta (dry pasta) specifically regards dishes with noodles that are plated "dry", not in broth. That would disqualify soup, risotto, ravioli...

Even though pastasciutta is the most stereotypical type of pasta today, it had a complicated relationship with the government during Italy's fascist years.

Keep reading...Show less

The latest