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Horizons ETFs to roll back or split shares

2020-01-24 18:43 ET - News Release

Also News Release (C-HQU) BetaPro NASDAQ-100 2x Daily Bull ETF
Also News Release (C-HSU) BetaPro S&P 500 2x Daily Bull ETF

An anonymous director reports

HORIZONS ETFS ANNOUNCES SHARE CONSOLIDATION AND SHARE SPLITS

Horizons ETFs Management (Canada) Inc. intends to consolidate and split the shares of certain exchange-traded funds as indicated in the attached tables.

Share consolidation

After the close of trading on Feb. 14, 2020, on the Toronto Stock Exchange, the shares of BetaPro S&P 500 VIX Short-Term Futures ETF will be consolidated on the basis of the ratio set out herein, and will begin trading on a postconsolidated basis on Feb. 18, 2020, the effective date of the consolidation.

                   SHARE CONSOLIDATION RATIO
ETF                                           Ticker   Consolidation ratio

BetaPro S&P 500 VIX Short-Term Futures ETF       HUV                  1:10             

When a share consolidation occurs, the net asset value per share is increased by the same ratio as the share consolidation so that the share consolidation has no impact on the value of the investor's total share position. An investor's cost per share is also increased by the same ratio as the share consolidation, although the total cost remains unchanged.

No fractional shares will be issued. Where the consolidation results in a fractional share, the number of postconsolidation shares will be rounded down to the nearest whole share in the case of a fractional interest that is less than 0.5, or rounded up to the nearest whole number in the case of a fractional interest that is 0.5 or greater.

Share splits

The shares of BetaPro NASDAQ-100 2x Daily Bull ETF and BetaPro S&P 500 2x Daily Bull ETF will be subdivided on the basis of the ratio as set out herein. The split will be payable on Feb. 14, 2020, to shareholders of record on Feb. 13, 2020. Shares will trade on a due bill basis at the opening of the Toronto Stock Exchange on Feb. 12, 2020, until Feb. 14, 2020, inclusive. The shares of the ETFs will commence trading on a split-adjusted basis on the ex dividend date of Feb. 18, 2020. Shares of the ETFs purchased on the ex dividend date will no longer have an attached entitlement to the share split.

                 SHARE SPLIT RATIO
ETF                                  Ticker    Split ratio

BetaPro NASDAQ-100 2x Daily Bull ETF    HQU            4:1        
BetaPro S&P 500 2x Daily Bull ETF       HSU            2:1        

When a share split occurs, the net asset value per share is decreased by the same ratio as the share split so that the share split has no impact on the value of the investor's total share position. An investor's cost per share is also decreased by the same ratio as the share split, although the total cost remains unchanged. Shareholders of the ETFs on the record date will be entitled to receive additional shares for every share of the ETF they own on that date, as stated herein.

The due bill trading procedures of the TSX will apply to the ETF's split of its shares. A due bill is an entitlement attached to listed securities undergoing a corporate action, such as the one described herein. The shares of the ETF will trade on a due bill basis from two trading days prior to the record date until the payment date, inclusive. Any trades that are executed on the Toronto Stock Exchange during the due bill period will be identified to ensure purchasers of the shares of the ETF receive the entitlement to the share split.

Horizons ETFs reserves the right to cancel or amend these corporate actions if it deems it appropriate to do so, before the effective date.

Shareholder information

Shareholders of the ETFs do not need to take any action to effect these transactions. Shareholders will have their brokerage accounts automatically updated to reflect the share consolidation and/or splits. A shareholder's broker may take several days to reflect these transactions in the shareholder's account. However, the shareholder is still able to trade the shares of the ETFs during this time. If they wish to do so, Horizons ETFs recommends investors contact their broker by phone during the settlement period to trade the postconsolidation and postsplit shares.

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