One off Methodology Change (criteria relaxation) | Cannabis Index | Effective Date 31 January 2020

Solactive AG announces the following one off criteria relaxation to the methodology of the following Index (‘Affected Index’):

Rationale for one off methodology change

Over the past months, there has been a significant drop in the market of companies that are active in the cannabis business. Market capitalizations and liquidity of these companies have significantly decreased over the last months. As a result, in the upcoming selection it would no longer be possible to include the minimum number of 25 companies given the current average daily trading volume and market capitalization thresholds. Therefore, the average daily trading volume and market capitalization criteria will be relaxed for the upcoming selection to ensure that the minimum number of companies is reached. 

One off change to the Index Guideline

The minimum average daily trading volume is relaxed up to USD 350,000 for the upcoming selection, referring to section 4.f in the Index Guideline of the Affected Index.

The minimum market capitalization is relaxed up to USD 40mn for the upcoming selection, referring to section 4.e in the Index Guideline of the Affected Index.

This will only be applied until 25 companies pass the criteria.