BlackRock, a single of the world’s biggest money managers, disclosed in regulatory filings that its funds have an $11 million stake in Curaleaf Holdings, a Massachusetts-primarily based health-related cannabis enterprise.
Even though the investment is tiny for BlackRock, which has almost $six trillion of assets below management, the stake is a single of the first publicly disclosed investments by a significant institutional investor into U.S. cannabis.
“Most institutional investors and banks have stayed on the sidelines for investing in cannabis firms that touch the plant,” John Brecker, a companion at New York-primarily based cannabis venture fund Altitude Investment Management, told Bloomberg.
The BlackRock investment tends to make it the biggest institutional investor in Curaleaf, according to Bloomberg.
In filings with the U.S. Securities and Exchange Commission, 5 BlackRock funds reported holding Curaleaf stock, Bloomberg reported, topped by BlackRock Sources & Commodities Approach Trust, which has about 1.1 million shares.
Curaleaf announced plans Wednesday to sell hemp goods in 800 CVS drug retailers in 10 states.
BlackRock trades on the New York Stock Exchange below the ticker symbol BLK.