ADVISORSHARES PURE US CANN Business Summary

AdvisorShares Pure US Cannabis ETF (MSOS) operates as an actively managed exchange-traded fund that generates revenue primarily through a management fee, currently structured with a gross expense ratio of 0.81% and a net expense ratio of 0.74% after fee waivers. The fund’s business model focuses on providing liquid exposure to the U.S. cannabis market, specifically targeting multi-state operators (MSOs) that derive at least 50% of their revenue from domestic marijuana and hemp activities. Because many U.S. cannabis companies are restricted from major domestic exchanges, MSOS utilizes total return swaps and other derivatives to bypass listing constraints, concentrating its portfolio in the pharmaceuticals, biotechnology, and life sciences sectors. It competes directly with the Amplify Alternative Harvest ETF (MJ), the Global X Cannabis ETF (CNBS), and its own sister fund, the AdvisorShares Pure Cannabis ETF (YOLO), distinguishing itself as the first and largest U.S.-listed ETF to offer exclusive, dedicated exposure to the domestic American cannabis industry. Leadership is spearheaded by Founder and CEO Noah Hamman, a financial technology veteran with over 25 years of experience who previously held senior roles at Fidelity Investments and Rydex (now Guggenheim), where he helped launch early index-based ETFs. The fund is managed by Dan Ahrens, Managing Director and Chief Operating Officer, who brings over two decades of expertise in thematic investing and authored "Investing in Cannabis" (2020); Ahrens previously gained notoriety as the original manager of the Vice Fund (VICEX). The executive team is supported by James Carl, Managing Director of Sales, and Rocco Macri, Vice President of Operations. The fund's governance is overseen by an independent board of trustees including Elizabeth Piper/Bach, JD, former COO of NADA Retirement, and William McVay, a veteran pension consultant and founder of RDK Strategies, ensuring fiduciary oversight for the trust's nearly $1 billion in assets under management.