Cannabis Benchmarks® Distributes its Canada Cannabis Pricing Indexes on Nasdaq Global Index Data Service

Published: February 24, 2020

Cannabis Benchmarks® Distributes its Canada Cannabis Pricing Indexes on Nasdaq Global Index Data Service

Cannabis Benchmarks®, a division of New Leaf Data Services, LLC (NLDS), announces the listing of three Canada Cannabis Spot Indexes, the first cannabis indexes that benchmark the wholesale price of cannabis paid to Canadian Licensed Producers, supporting price discovery and ultimately enabling the creation of tradable financial instruments. The indexes are calculated weekly using a proprietary cannabis index methodology developed by Cannabis Benchmarks®.

Key points on the Canada Cannabis Spot Indexes:

  • Value is determined by the simple average of assessed wholesale transactions for non-medical dry cannabis flower.
  • The indexes are a representation of the average wholesale price paid across all provinces, both including and excluding all excise taxes.
  • Cannabis Benchmarks’ methodology includes working directly with market participants from both the supply and demand sides, including analysis of public and private data, to assess the average wholesale price paid each week.

These reference price benchmarks provide critical pricing data that support decision making related to buying and selling at fair market price, asset and equity valuation, compliance with accounting standards, and commodity hedging and risk management.

Cannabis Benchmarks® is disseminating this index data through Nasdaq’s GIDS service to aid in providing maximum transparency to the marketplace. GIDS provides data recipients, either directly or through a third-party distributor, the opportunity to reduce network, administrative and data center costs by taking one data feed, rather than many.

“Since the Canadian adult use market opened in October 2018, industry participants – including cultivators, processors, retailers, investors and debt and equity analysts – have been seeking price transparency to analyze and navigate a dynamic market currently characterized by swiftly changing market fundamentals,” said Jonathan Rubin, CEO of NLDS. “We are pleased to be using Nasdaq’s GIDS to offer the market an independent reference benchmark to support strategic, operational and investment related decisions.”

“The Cannabis Benchmarks® Indexes are a breakthrough for market participants in need of fair and transparent price benchmarks to better understand this emerging commodity” said Rubin. “These indexes will become increasingly important to physical and financial industry participants as legal cannabis markets expand the need for trading and risk management.”

Cannabis Benchmarks® is a division of New Leaf Data Services, LLC. Our mission is to bring transparency and efficiency to cultivators, dispensaries, investors, traders, and other cannabis market participants through validated, standardized wholesale price benchmarks and fundamental market data and research. For more information, please visit: www.cannabisbenchmarks.com