One-off Methodology Change (criteria relaxation) | Cannabis Index (.POTX) | Effective Date 08/08/2022

Today, on the 05/08/2022, Solactive announces the following one-off criteria relaxation to the methodology of the following Indices (the ‘Affected Indices’):

Rationale for one off methodology change

Today, on the 05/08/2022, Solactive announces the following one-off criteria relaxation to the methodology of the following Indices (the ‘Affected Indices’):

Rationale for one off methodology change

Due to the significant drop in the cannabis market, which has a negative impact on the Average Daily Value Traded (ADV) and the Market Capitalization (MCAP) of the respective stocks/companies in particular, there are not enough stocks/companies to ensure that the weighting requirements as reflected in Section 1.5 of the methodology can be fulfilled, even after applying the relaxed selection criteria as stated in section 2.1 of the index guideline. Therefore, Solactive has determined that the minimum Market Capitalization and Average Daily Trading Volume requirement for current index member as documented in Section 2.1. will be reduced for the upcoming Rebalancing. Furthermore, the aggregated weight cap of 10% for companies classified as Pre-Revenue Companies will be disregarded for the upcoming Rebalancing (Section 1.5).

One-off change to the Index Guideline

Section 1.5

The following section will be disregarded in the upcoming Rebalancing:

“[…]

4. d) The aggregate weight of Pre-Revenue Companies (as defined in Section 4) cannot exceed 10% of the index weight, and the maximum weight of a Pre-Revenue Company is 4.5%.

[…].”

Section 2.1

From:

“[…]

2. the market capitalization is relaxed up to USD 50 million (USD 40 million for companies that are Index Components on the applicable Selection Day)
3. the average daily trading volume in the last three and/or six months is relaxed up to USD 0.5 million (USD 0.35 million for companies that are Index Components on the applicable Selection Day

[…].”

To:

“[…]

2. the market capitalization is relaxed up to USD 50 million (USD 35 million for companies that are Index Components on the applicable Selection Day)
3. the average daily trading volume in the last three and/or six months is relaxed up to USD 0.5 million (USD 0.2 million for companies that are Index Components on the applicable Selection Day

[…].”

Defined terms used in this announcement, but not defined herein, have the meaning assigned to them in the respective index guideline of the Affected Indices. The amended version of the index guideline will be available on the effective date.