Horizons ETFs Announces ETF Consolidation

TORONTO – July 13, 2022 – Horizons ETFs Management (Canada) Inc. (“Horizons ETFs”) has announced today that it intends to consolidate, as applicable, shares or units (the “Securities” or each individually a “Security”) of certain ETFs (the “Consolidating ETFs”) as indicated in the table below.

After the close of trading on Friday, July 29, 2022, on the Toronto Stock Exchange and the NEO Stock Exchange, the Securities of each Consolidating ETF will be consolidated based on the ratio (the “Consolidation Ratio”) set out below and will begin trading on a post-consolidated basis on Tuesday, August 2, 2022, the effective date of the consolidation:

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

No fractional Securities will be issued. Where the consolidation results in a fractional Security, the number of post-consolidation Securities will be rounded down to the nearest whole Security, 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.

Securityholder Information
Securityholders of the Consolidating ETFs do not need to take any action to affect these transactions. Securityholders will have their brokerage accounts automatically updated to reflect the consolidations. A Securityholder’s broker may take several days to reflect these transactions in the Securityholder’s account (the “Settlement Period”). However, the Securityholder is still able to trade the Securities of the Consolidating ETFs during this time. If they wish to do so, Horizons ETFs recommends investors contact their broker by phone during the Settlement Period in order to trade the post-consolidation Securities.

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 over $21 billion of
assets under management and 104 ETFs listed on major Canadian stock exchanges.

For further information:
Contact Horizons ETFs at 1-866-641-5739 (toll-free) or (416) 933-5745
[email protected]

Commissions, management fees and expenses all may be associated with an investment in exchange traded products managed by Horizons ETFs Management (Canada) Inc. (the “Horizons Exchange Traded Products”). The Horizons Exchange Traded Products are not guaranteed, their value changes frequently and past performance may not be repeated. Certain Horizons Exchange Traded Products may have exposure to leveraged investment techniques that magnify gains and losses and which may result in greater volatility in value and could be subject to aggressive investment risk and price volatility risk. Such risks are described in the prospectus. The prospectus contains important detailed information about the ETF. Please read the relevant prospectus before investing.

For a summary of the risks of an investment in the Consolidating ETF, please see the specific risks set out in the applicable prospectus. The Consolidating ETF trades like a stock, fluctuates in market value and may trade at a discount to its net asset value, which may increase the risk of loss.

This communication is intended for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to purchase the Horizons Exchange Traded Products and is not, and should not be construed as, investment, tax, legal or accounting advice, and should not be relied upon in that regard. Individuals should seek the advice of professionals, as appropriate, regarding any particular investment.