TORONTO – January 24, 2020 – Horizons ETFs Management (Canada) Inc. (“Horizons ETFs”) has announced today that it intends to consolidate and split the shares of certain exchange traded funds as indicated in the tables below.
Share Consolidation
After the close of trading on Friday, February 14, 2020, on the Toronto Stock Exchange (the “TSX”), the shares of the BetaPro S&P 500 VIX Short-Term Futures™ ETF will be consolidated on the basis of the ratio (the “Consolidation Ratio”) set out below, and will begin trading on a post-consolidated basis on Tuesday, February 18, 2020, the effective date of the consolidation:
| 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 their total cost remains unchanged.
No fractional shares will be issued. Where the consolidation results in a fractional share, the number of post-consolidation 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 (together, the “ETFs”) will be subdivided on the basis of the ratio (the “Split Ratio”) as set out below. The split will be payable on Friday, February 14, 2020, to shareholders of record on Thursday, February 13, 2020. Shares will trade on a “due bill” basis at the opening of the TSX on February 12, 2020 until February 14, 2020, inclusive. The shares of the ETFs will commence trading on a split-adjusted basis on the “ex-dividend” date of Tuesday, February 18, 2020. Shares of the ETFs purchased on the ex-dividend date will no longer have an attached entitlement to the share split.
| 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 their 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 in the table above.
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 above. 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 (the “due bill period”). Any trades that are executed on the TSX 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 we deem 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 (the “Settlement Period”). 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 in order to trade the post-consolidation and post-split shares.
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 more than $10.5 billion of assets under management and 91 ETFs listed on major Canadian stock exchanges.
For investor inquiries:
Contact Horizons ETFs at 1-866-641-5739 (toll-free) or (416) 933-5745
[email protected]
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