Teucrium Sugar Fund

What they do

The Trust is a series trust organized in Delaware that issues shares of separate Funds, each of which seeks exposure to commodity futures or, for TAGS, to the combined daily performance of four Underlying Funds. The Agricultural Funds (Corn, Sugar, Soybean, Wheat) invest in Benchmark Component Futures Contracts, while Teucrium Agricultural Fund (TAGS) holds shares of the four Underlying Funds. A newer series, the 7RCC Spot Bitcoin and Carbon Credit Futures ETF (BTCK), commenced operations on June 3, 2026, and holds bitcoin and carbon credit futures. Each Fund pays brokerage fees and expenses, and all Funds other than TAGS pay a management fee to the Sponsor that may be waived at the Sponsor's discretion.

Revenue drivers

• Teucrium Corn Fund (CORN) — A single-commodity fund that tracks corn futures; one of the four Underlying Funds on which TAGS is based and a core source of Trust-level volatility and fee generation.
• Teucrium Sugar Fund (CANE) — A single-commodity fund tracking sugar futures; another Underlying Fund for TAGS, contributing to the Trust's combined assets and fee base.
• Teucrium Soybean Fund (SOYB) — A single-commodity fund tracking soybean futures; one of the four Underlying Funds, with its own share registration and fee obligation.
• Teucrium Wheat Fund (WEAT) — A single-commodity fund tracking wheat futures; the fourth Underlying Fund, completing the TAGS portfolio of agricultural commodities.

Recent performance

Annual net income has been negative every year from 2022 through 2025, with losses narrowing from $-78.2M in 2022 to $-47.9M in 2024 and $-26.5M in 2025. Annual revenue was $-66.4M in 2022, $-63.8M in 2023 and $-39.4M in 2024. Operating cash flow was negative $106.3M in 2022, $-55.6M in 2023 and $-39.4M in 2024. Recent quarterly revenue was $11.1M for the quarter ended December 31, 2023, then $-21.5M for March 31, 2024, $-8.8M for June 30, 2024, and $2.0M for September 30, 2024. As of June 30, 2026, cash and equivalents were reported at $533.0M.

Strategy

The Sponsor intends to reinvest income and realized gains in additional Benchmark Component Futures Contracts (or, for TAGS, shares of the Underlying Funds) rather than distributing cash to shareholders. Funds may at any time, without shareholder approval or advance notice, change their investment objective, Benchmark or investment strategies if market conditions, CFTC position limits, exchange rules or risk mitigation measures by a futures commission merchant restrict the use of current Benchmark Component Futures Contracts. The Trust has expanded beyond agricultural commodities with BTCK, which commenced operations on June 3, 2026, following its organization as a series on September 17, 2025. The Trust also effected a 1-for-5 reverse share split on November 25, 2025.

Risks

• Unilateral changes to investment objective or Benchmark — Each Fund may change its investment objective, Benchmark or strategies without shareholder approval or advance notice, which could cause shareholder losses.
• No cash distributions and tax drag — Funds generally do not distribute cash and reinvest income, so shareholders cannot rely on distributions to pay taxes on their share of income and gains.
• Position limits and CFTC/exchange rules — CFTC or futures exchange position limits, or risk mitigation measures imposed by a futures commission merchant, could restrict the Funds' or Underlying Funds' ability to invest in Benchmark Component Futures Contracts.
• Termination risk on expense levels — The Sponsor may terminate a Fund if aggregate net assets are unreasonable relative to operating expenses, and the Funds may be forced to terminate if they cannot raise sufficient funds, risking loss of all or part of an investment.

Outlook

The filings state that a discussion of global information for each specific underlying commodity can be found in the section titled 'Market Outlook,' but no specific forward guidance figures are provided in the excerpts. Management discloses that BTCK commenced operations on June 3, 2026, and that BTCK had not commenced operations as of December 31, 2025. The Funds reserve the right to make cash distributions in certain situations, such as if income from investments or margin reaches levels where distribution is warranted, though they do not intend to do so.