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Ninepoint Alternative Health Fund

Why Invest in Ninepoint Alternative Health Fund

  • Increasing demand for alternative healthcare: The use of nutraceuticals and cannabis to treat and prevent disease is expected to grow as new applications increase.
  • Access to an early stage sector: With the legalization of cannabis, the industry is anticipating high growth in medical and recreational use.
  • Aging demographics: A rise in healthcare expenditures, driven by an aging global population, is pushing consumers to seek cheaper alternatives to treat chronic conditions.
  • Focus on reducing volatility: Active management helps to reduce the risk of investing in the volatile cannabis sector by investing in liquid securities and allocating to other nutraceutical sectors.


Fund Objective

The Fund’s objective is to achieve growth by investing primarily in equity securities of companies engaged in nutrition, nutraceuticals and new forms of medicines and pharmaceutical solutions.

Investment Strategies

The Fund will invest in a portfolio of companies that are listed on North American exchanges that have a business strategy focused on new and alternative health and wellness related themes that are growing in acceptance and importance in North America. This includes pharmaceutical companies; nutritional vitamins and supplement companies, health and wellness service providers; businesses engaged in providing diet and weight loss programs; alternative healthcare service providers; Canadian licensed producers of marijuana and related service providers; as well as companies involved in the processing, marketing and distribution of organic food and beverage products.

As a result, the Fund is designed to ensure that its portfolio is well diversified and to reduce the Fund’s concentration in any one security.

The majority of the securities are expected to have:

  • a minimum market capitalization of $100 million at the time of investment, and
  • an average daily trading value in excess of $1,000,000.

Performance as of 6/28/2019 (Series F)

MTD†† YTD %†† 1 YR % 3 YR % 5 YR % 10 YR % Inception %
-4.25 7.89 26.21 - - - 46.06
††As of previous close

Market View: June 18, 2019

In a technical briefing Friday, Health Canada confirmed a two-month rollout of new cannabis edibles to mid-Dec. 2019 before products from the rollout of Cannabis 2.0 can be sold.

There is a 3 step process before the first sales can occur:

  1. LPs must amend their existing sales license to be able to sell Cannabis 2.0 products, with the application period opening on July 15th, 2019. This does not prevent producers from manufacturing and building up inventory of these products currently.
  2. On Oct. 17, 2019, the regulations surrounding Cannabis 2.0 products come into effect. As of this date, Health Canada will accept notice applications from LPs detailing the Cannabis 2.0 products those LPs intend to sell.
  3. There is a 60-day notice period from the date which an LP sends a notice application to Health Canada. (October 17, 2019) , that LPs may begin selling their Cannabis 2.0 products assuming there was no objection from Health Canada. This means that first days for product sales can be no earlier than December 17th, 2019.

Edibles dosage is limited to just 10mg per package

This is very different from US edible products that have a 100mg limit yet are sub-divided into 5mg or 10mg dosage pieces within the product. (see below). "Legal in Canada" packages will essentially be 1 square of the chocolate bar, or two chocolate covered mints within the can, resulting in increased expense in packaging.

There has been no further rules or decisions separating hemp derived CBD products out of the cannabis dispensary network.

This is similar to what we have been suggesting over the last few months, that Health Canada will slow down the rollout of edibles and thus cause both a slower ramp-up in sales for Cdn LPs as well as reduced margin expectations as value added products will be delayed in getting into the market.

Charles Taerk & Douglas Waterson
Portfolio Team
Ninepoint Alternative Health Fund




Are You An Accredited Investor?

The minimum subscription amount is $150,000.00 in all jurisdictions, unless you meet the definition of "accredited investor" under National Instrument 45-106 Prospectus and Registration Exemptions.

If you meet the definition "accredited investor" (see below), you may invest a minimum of $25,000. Please consult the Offering Memorandum to determine your qualification status. Investment Advisors should consult their company's internal policies.

The Subscriber, or one or more beneficial purchasers for whom the Subscriber is acting, is (i) a resident of, or the purchase and sale of securities to the Subscriber is otherwise subject to the securities legislation of one of the following: British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Québec, Newfoundland and Labrador, Nova Scotia, New Brunswick, Prince Edward Island, North West Territories, or Nunavut, and the Subscriber is (and will at the time of acceptance of the Subscription be) an accredited investor within the meaning of National Instrument 45-106 Prospectus and Registration Exemptions ("NI 45-106") because the Subscriber is one of the following:

(a) a Canadian financial institution, or a Schedule III bank;
(b) the Business Development Bank of Canada incorporated under the Business Development Bank of Canada Act (Canada);
(c) a subsidiary of any person referred to in paragraphs (a) or (b), if the person owns all of the voting securities of the subsidiary, except the voting securities required by law to be owned by directors of that subsidiary;
(d) a person registered under the securities legislation of a jurisdiction of Canada as an adviser or dealer, other than a person registered solely as a limited market dealer under one or both of the Securities Act (Ontario) or the Securities Act (Newfoundland and Labrador);
(e) an individual registered or formerly registered under the securities legislation of a jurisdiction of Canada as a representative of a person referred to in paragraph (d);
(f) the Government of Canada or a jurisdiction of Canada, or any crown corporation, agency or wholly owned entity of the Government of Canada or a jurisdiction of Canada;
(g) a municipality, public board or commission in Canada and a metropolitan community, school board, the Comité de gestion de la taxe scolaire de l'île de Montréal or an intermunicipal management board in Québec;
(h) any national, federal, state, provincial, territorial or municipal government of or in any foreign jurisdiction, or any agency of that government;
(i) a pension fund that is regulated by the Office of the Superintendent of Financial Institutions (Canada), a pension commission or similar regulatory authority of a jurisdiction of Canada;
(j) an individual who, either alone or with a spouse, beneficially owns financial assets having an aggregate realizable value that before taxes, but net of any related liabilities, exceeds $1,000,000;
(k) an individual whose net income before taxes exceeded $200,000 in each of the 2 most recent calendar years or whose net income before taxes combined with that of a spouse exceeded $300,000 in each of the 2 most recent calendar years and who, in either case, reasonably expects to exceed that net income level in the current calendar year;
(Note: If individual accredited investors wish to purchase through wholly-owned holding companies or similar entities, such purchasing entities must qualify under section (t) below, which must be initialled.)
(l) an individual who, either alone or with a spouse, has net assets of at least $5,000,000;
(m) a person, other than an individual or investment fund, that has net assets of at least $5,000,000 as shown on its most recently prepared financial statements;
(n) an investment fund that distributes or has distributed its securities only to:
  1. a person that is or was an accredited investor at the time of the distribution,
  2. a person that acquires or acquired securities in the circumstances referred to in sections 2.10 [Minimum amount investment] or 2.19 [Additional investment in investment funds] of NI 45- 106, or
  3. a person described in paragraph (i) or (ii) that acquires or acquired securities under section 2.18 [Investment fund reinvestment] of NI 45-106;
(o) an investment fund that distributes or has distributed securities under a prospectus in a jurisdiction of Canada for which the regulator or, in Québec, the securities regulatory authority, has issued a receipt;
(p) a trust company or trust corporation registered or authorized to carry on business under the Trust and Loan Companies Act (Canada) or under comparable legislation in a jurisdiction of Canada or a foreign jurisdiction, acting on behalf of a fully managed account managed by the trust company or trust corporation, as the case may be;
(q) a person acting on behalf of a fully managed account managed by that person, if that person:
  1. is registered or authorized to carry on business as an adviser or the equivalent under the securities legislation of a jurisdiction of Canada or a foreign jurisdiction; and
  2. Ontario, is purchasing a security that is not a security of an investment fund;
(r) a registered charity under the Income Tax Act (Canada) that, in regard to the trade, has obtained advice from an eligibility adviser or an adviser registered under the securities legislation of the jurisdiction of the registered charity to give advice on the securities being traded;
(s) an entity organized in a foreign jurisdiction that is analogous to any of the entities referred to in paragraphs (a) to (d) or paragraph (i) in form and function;
(t) a person in respect of which all of the owners of interests, direct, indirect or beneficial, except the voting securities required by law to be owned by directors, are persons that are accredited investors;
(u) an investment fund that is advised by a person registered as an adviser or a person that is exempt from registration as an adviser, or;
(v) a person that is recognized or designated by the securities regulatory authority or, except in Ontario and Québec, the regulator as an accredited investor.


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