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Non-Cash Distributions Announced for the BetaPro Marijuana Companies Inverse ETF and the BetaPro S&P/TSX 60™ 2x Daily Bull ETF

TORONTO , Nov. 28, 2019 /CNW/ - Horizons ETFs Management ( Canada ) Inc. ("Horizons ETFs") announced today the non-cash distributions to unitholders of the BetaPro Marijuana Companies Inverse ETF ("HMJI") and the BetaPro S&P/TSX 60™ 2x Daily Bull ETF ("HXU").

These non-cash distributions were made payable to all unitholders of record on November 27, 2019 . The nominal payment date applied to these non-cash distributions will also be November 27, 2019 , though in actuality there will be no physical payment made as would be the case with cash distributions.

Ticker Symbol

Non-Cash Distribution
per Unit as of
November 27, 2019

Net Asset Value
per Unit as of
November 27, 2019

Non-Cash
Distribution as a %
of NAV as of
November 27, 2019

HMJI

$8.21855

$36.8981

22.27%

HXU

$0.37446

$42.8175

0.87%

 

The distributions on HMJI and HXU were made in connection with tax proposals that were made this year which would no longer allow ETFs to allocate any income distributions to unitholders that redeem ETFs directly with Horizons ETFs in the primary market.  As a result, HMJI and HXU each made a one-time distribution to all existing unit holders as of the November 27, 2019 record date.

All of Horizons' BetaPro suite of ETFs have completed a reorganization (the "Reorganization") into Horizons ETF Corp., a single multi-class corporate fund structure managed by Horizons ETFs, as approved by unitholders of the ETFs at special meetings held earlier this month. The Reorganization was effective as of the close-of-business on November 27, 2019 , at which time Horizons ETFs issued a press release noting this change. The press release can be found here: https://www.horizonsetfs.com/news/Press-Release/Horizons-ETFs-Completes-Corporate-Class-Reorganiza

HMJI and HXU are the only two ETFs offered by Horizons ETFs that were required to make a distribution as part of the Reorganization. Horizons ETFs does not anticipate that HMJI and HXU will make any regular dividends or returns of capital going forward.

The non-cash distributions will be each automatically reinvested in additional units of HMJI and HXU respectively and immediately consolidated so that the number of units held by the unitholder (the outstanding units of the ETFs) and the net asset value of the ETFs will not change as a result of the non-cash distribution. These non-cash distributions will be reported to investors as taxable distributions and will increase each unitholder's adjusted cost bases for each of HMJI and HXU.

In early 2020, the tax characteristics of these distributions for 2019 tax purposes will be reported to brokers via CDS Clearing and Depository Services Inc. and will be posted on our website shortly thereafter.

About Horizons ETFs Management ( Canada ) Inc. (www.HorizonsETFs.com)
Horizons ETFs Management ( Canada ) Inc. is an innovative financial services company and offers one of the largest suites of exchange traded funds in Canada . The Horizons ETFs product family includes a broadly diversified range of solutions for investors of all experience levels to meet their investment objectives in a variety of market conditions. Horizons ETFs has approximately $10 billion of assets under management and 91 ETFs listed on major Canadian stock exchanges.

Certain  statements  may  constitute  a  forward  looking  statement,  including  those  identified  by  the  expressions "anticipate", "estimate" or "expect" and similar expressions (including grammatical variations thereof) to the extent they relate to the ETFs or Horizons ETFs. The forward-looking statements are not historical facts but reflect the ETFs, the ETF's managers or Horizons ETFs current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations.  These and other factors should be considered carefully and readers should not place undue reliance on the ETFs' forward looking statements. These forward-looking statements are made as of the date hereof and the ETFs do not undertake to update any forward-looking statement that is contained herein, whether as a result of new information, future events or otherwise, unless required by applicable law.

SOURCE Horizons ETFs Management ( Canada ) Inc.


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