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Good Morning,

US homebuilder sentiment keeps tumbling, Biden says the US would defend Taiwan if China invaded, US bank CEOs will testify in Congress this week, the world is going to explode if the Fed announces a 100 bps hike on Wednesday, Zuckerberg's net worth has dropped by $71B YTD, and California signed a bill that states employers can't discriminate against workers for smoking weed off-the-job. Cannabis making moves in the states!

Speaking of Cannabis, if you're looking to invest in cannabis, ETFMG, is the ETF provider of the largest global cannabis ETF. More info about their offerings below!

Let's dive in.

Before The Bell

Markets

• The Fed is expected to announce a 75 bps hike in their Wednesday meeting

  • The Dow rose 100 points in a volatile trading session as we approach the Fed’s next meeting

  • 10Y Treasury yield jumped to 3.51%, the highest level since 2011

Earnings

• What we're watching this week:

  • Wednesday: General Mills, Trip.com

  • Thursday: Accenture, Costco, FedEx, Manchester United 

• Full calendar here

Headline Roundup

• US home builder sentiment fell for a ninth straight month in September, falling into the negative range (RT)

• Futures markets show a >80% chance that the Fed hikes rates by 75 bps (WSJ)

• Biden said US would defend Taiwan in event of a Chinese invasion (RT)

• BNY Mellon, Deutsche Bank and Warburg Group will pay ~$60M to German tax authorities over 'cum-ex' tax scandal (RT)

• Baring PE Asia is passing up on ~$6B of deals as it awaits further decline in valuations amid a possible global recession (BBG)

• US bank CEOs will testify in Congress on consumer and social issues this week (RT)

• Chinese buyers are acquiring luxury homes as a 'hard currency' despite a weak property market (RT)

• Tesla aims to double vehicle sales in Germany in 2022 (RT)

• Video game coaching marketplace Metafy cut 23% of staff despite doubling revenue (TC)

• Mark Zuckerberg's wealth has dropped by $71B this year since pivoting into the metaverse (BBG)

• ‘Rapid acceleration’ in US school book censorship leads to 2.5k bans in a year (GU)

• FAA rejects proposal to halve flight-time requirements for pilots as shortage prompts route cuts (CNBC)

A Message From ETFMG

Those Dispo ounces getting a bit pricey due to inflation? Can’t buy because it’s illegal in your state? Like the idea of cannabis but aren’t into the consumption part?

If you’re thinking about investing in cannabis, ETFMG is the one-stop shop for those interested in this theme with a suite featuring 2x long, 2x short, US-only or global exposure exchange-traded funds.

The ETFMG Alternative Harvest ETF, (NYSE Arca: MJ), the world’s largest global cannabis ETF, gives investors exposure to domestic operations, including multi-state operators directly involved in the cultivation, production, marketing and distribution of cannabis or cannabis-related products in the United States, as well as companies with global operations.

If you’re looking for pure play access to U.S. Multi-State Operators (MSOs) check out the ETFMG U.S. Alternative Harvest ETF, (NYSE Arca: MJUS).

To learn more about MJ and MJUS go to etfmg.com/cannabis. Full disclosure below.

Deal Flow

M&A / Investments

• The shareholders of software company Zendesk approved a $10.2B planned purchase of the firm by a consortium of PE firms led by Hellman & Friedman and Permira (RT)

• Vista Equity Partners offered to buy cybersecurity firm KnowBe4 for $4.22B (RT)

• German football’s governing body DFL will launch the sale of a $3.6B stake in Bundesliga's media rights business by October (RT)

• Telecom firms TIM, Telefonica Brasil and Claro are seeking to lower the price paid for rival telecom Oi’s mobile division by ~$605M (RT)

• International Holding Co. agreed to buy a 15% stake in healthcare provider Burjeel Holdings ahead of its Abu Dhabi IPO this year (BBG)

• South Africa-listed gold miner AngloGold Ashanti agreed to buy Coeur Sterling, a subsidiary of Coeur Mining with mining concessions in Nevada adjacent to its own, for $150M (RT)

VC

• Swiftly, a retail technology platform for brick-and-mortar stores, raised a $100M Series C at a $1B+ valuation led by BRV Capital Management (TC)

• Sievo, a procurement analytics SaaS provider, received $44M in funding from Susquehanna Growth Equity (BW)

• African crypto exchange Yellow Card raised a $40M Series B led by Polychain Capital (PRN)

• Naveris, a startup improving early viral cancer detection, raised a $33.4M Series A extension led by Gurnet Point Capital (BW)

• Diversity recruiting and retention platform PowerToFly raised a $30M round led by Expansion Capital (PRN)

• 1MRobotics, a startup building ‘nano-fulfillment centers’ for on-demand delivery, raised a $16.5M Series A led by Ibex Investors (TC)

• Insurtech startup Bamboo Insurance raised a $16M Series A led by Eos Venture Partners (PRN)

• Ideon Technologies, a startup using particle physics to find critical minerals, raised a $16M Series A led by Playground Global (TC)

• Task planning automation startup Motion raised a $13M Series A led by SignalFire (TC)

• Integrated fixation spinal technologies startup Elevation Spine raised an $11M Series B led by Technology Venture Partners (BW)

• CoverTree, a digital insurance solution for manufactured home residents, raised a $10M seed round led by AV8 Ventures and Distributed Ventures (BW)

• Kamari Pharma, an Israeli-based biotechnology startup, received an $8M investment from the Chinese fund GIBF2 (PRN)

• Dyania Health, a startup helping automate clinical trial processes, raised a $5.3M seed round led by Innospark Ventures (PRN)

• Zócalo Health, a healthcare startup designed for Latino patients, raised a $5M seed round led by Animo, Virtue, and Vamos Ventures (BW)

• Boundless Rider, a motorcycle insurance startup, raised a $4.75M seed round led by American Family Ventures (PRN)

• Fintech app Portabl raised a $2.5M seed round led by Harlem Capital Partners (TC)

IPO / Direct Listings / Issuances / Block Trades

• Indian conglomerate and Unilever rival Patanjali is aiming for a combined $62.7B market value by listing four more companies in India by 2027 (BBG)

• Sports car maker Porsche is planning to raise up to $9.4B at an up to $78B valuation in its upcoming IPO (WSJ)

• Onewo, the property management unit of real estate developer China Vanke, is planning to raise up to $784M in a Hong Kong IPO (BBG)

Debt

• Investment bankers are struggling to raise $15B in debt from debt investors to fund Vista Equity Partners' and Elliot Management's $16B purchase of Citrix; investor orders thus far have covered ~$8.55B on offer from Bank of America, Goldman Sachs, and Credit Suisse (FT)

• Barclays and Bank of America launched a $1.87B high-yield bond and $2B leveraged loan sale respectively to help finance Apollo's acquisition of internet provider Brightspeed despite market volatility (BBG)

• Crisis-hit Sri Lanka will present their debt restructuring and IMF bailout plans to international creditors on Friday (RT)

Bankruptcy / Restructuring

• Troubled EV startup Mullen is the leading bidder for the assets of bankrupt competitor Electric Last Mile Solutions (BBG)

Fundraising

• OurCrowd, a global crowdfunding venture firm, announced the launch of its $200M Global Health Equity Fund which aims to invest in healthcare startups (TC)

• Concord Health Partners, a healthcare focused investment firm, raised $150M for its Innovation Fund II (PRN)

• OWC Ventures, a division of blockchain/web3 accelerator Open Web Collective, is planning to raise a $20M fund for pre-seed to Series A deals (TC)

• Byld Ventures raised a $15M fund to invest in African fintech startups (TC)

Crypto Corner

• UK's financial regulator FCA listed FTX crypto exchange as an 'unauthorized' firm (CT)

• Crypto firm Ripple Labs is fighting an SEC lawsuit by claiming that investors in its XRP token have no rights (BBG)

• Ethereum dropped 17%+ after ‘way over-hyped’ merge (TC)

Exec's Picks

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• 🌿🌿 Yesterday afternoon, I circulated an investment opportunity to Litquidity Syndicate members to invest in a Cannabis SaaS startup's Series A funding round. If you're an accredited investor and interested in learning more, send me an email at [email protected] asking for more info and please state that you are an accredited investor.

The Hiring Block 💼

If you're looking to break into finance, lateral, or move out, check out our job board on Pallet, where we curate highly relevant roles for you. We aim to curate jobs across IB, S&T, VC, tech, private equity, DeFi, crypto, CorpDev and more. We'll sift through all the noise on LinkedIn, Indeed, Monster, etc. so you don't have to.

If you're a company looking to hire candidates and want to list a job opening on our board and feature on Exec Sum, click the button below:

Meme Cleanser

ETFMG does not promote, condone or advocate licit or illicit drug use.

Carefully consider the Fund’s investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Fund’s statutory and summary prospectus, which may be obtained by calling 1-844-383-6477, or by visiting www.etfmg.com. Read the prospectus carefully before investing.

Investing involves risk, including the possible loss of principal. Shares of any ETF are bought and sold at market price (not NAV), may trade at a discount or premium to NAV and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. Narrowly focused investments typically exhibit higher volatility. The possession and use of marijuana, even for medical purposes, is illegal under federal and certain states’ laws, which may negatively impact the value of the Fund’s investments. Use of marijuana is regulated by both the federal government and state governments, and state and federal laws regarding marijuana often conflict. Even in those states in which the use of marijuana has been legalized, its possession and use remains a violation of federal law. Federal law criminalizing the use of marijuana pre-empts state laws that legalizes its use for medicinal and recreational purposes. Cannabis companies and pharmaceutical companies may never be able to legally produce and sell products in the United States or other national or local jurisdictions.

The Fund’s investments will be concentrated in an industry or group of industries to the extent that the Index is so concentrated. In such event, the value of the Fund’s shares may rise and fall more than the value of shares of a fund that invests in securities of companies in a broader range of industries. The consumer staples sector may be affected by the permissibility of using various product components and production methods, marketing campaigns and other factors affecting consumer demand. Tobacco companies, in particular, may be adversely affected by new laws, regulations and litigation. The consumer staples sector may also be adversely affected by changes or trends in commodity prices, which may be influenced or characterized by unpredictable factors.

Investing in an ETFMG 2x Daily Leveraged ETF may be more volatile than investing in broadly diversified funds. The use of leverage by an ETF increases the risk to the ETF. The ETFMG 2x Daily Leveraged ETFs are not suitable for all investors and should be utilized only by sophisticated investors who understand leverage risk, consequences of seeking daily leveraged, or daily inverse leveraged, investment results and intend to actively monitor and manage their investment as frequently as daily. The Fund’s returns for periods longer than a single day will very likely differ in amount, and possibly even direction, from the Fund’s 2x the return of the Index for the same period. For periods longer than a single day, the Fund will lose money if the Index’s performance is flat, and it is possible that the Fund will lose money even if the level of the Index rises.

ETF Managers Group LLC is the investment adviser to the Fund. The Fund is distributed by ETFMG Financial LLC. ETF Managers Group LLC and ETFMG Financial LLC are wholly owned subsidiaries of Exchange Traded Managers Group LLC (collectively, “ETFMG”). ETFMG is not affiliated with Prime Indexes.