Horizons ETFs Announces Completion of Cannabis ETF Merger

TORONTO, Feb. 28, 2020 /CNW/ - Horizons ETFs Management (Canada) Inc. (the "Manager") is pleased to announce the completion of the previously announced merger (the "Merger") of Horizons Emerging Marijuana Growers Index ETF ("HMJR") into Horizons US Marijuana Index ETF ("HMUS") (each, an "ETF", or collectively, the "ETFs") effective as of the close of business today. The Merger proposal was approved at a meeting of HMJR unitholders on February 19, 2020.

The units of HMJR were exchanged for the Canadian dollar-traded units of HMUS at the following ratio (the "Merger Ratio"), based on the respective closing net asset values of each ETF.

As a result of the above Merger Ratio, unitholders of HMJR will be issued 0.58198356 units of HMUS for each unit of HMJR held as at February 28, 2020, rounded to the nearest whole unit.

As HMUS is substantially larger than HMJR, it is the opinion of the Manager that merging HMJR into HMUS will provide unitholders of HMJR with the opportunity to continue their investment in a marijuana-focused ETF that will have a larger market capitalization and greater exposure to larger-capitalized, North American publicly-listed life sciences companies with significant business activities in, or significant exposure to, the United States marijuana or hemp industries.

In addition, HMJR declared and paid a reinvested non-cash distribution of income (the "Non-Cash Distribution") of $0.00879 per unit immediately prior to the Merger into HMUS. The Non-Cash Distribution will not be paid in cash but will be reinvested and reported as taxable distributions and will be used to increase each unitholder's adjusted cost base for HMJR immediately prior to the Merger. The ex-dividend date for this distribution is February 27, 2020, for all unitholders of record on February 28, 2020. The nominal payment date applied to this Non-Cash Distributions is also February 28, 2020, though in actuality there will be no physical payment made as would be the case with cash distributions.

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 $12 billion of assets under management and 93 ETFs listed on major Canadian stock exchanges.

Commissions, management fees and expenses all may be associated with an investment in exchange traded products (the "Horizons Exchange Traded Products") managed by Horizons ETFs Management (Canada) Inc. The Horizons Exchange Traded Products are not guaranteed, their values change frequently and past performance may not be repeated. The prospectus contains important detailed information about the Horizons Exchange Traded Products. Please read the relevant prospectus before investing.

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.

There are risks associated with this product. HMUS is expected to invest in the Marijuana industry in certain U.S. states that have legalized marijuana for therapeutic or adult-use, which is currently illegal under U.S. federal law. HMUS will passively invest in companies involved in the marijuana industry in the U.S. where local state law regulates and permits such activities, as well as in companies involved in the Canadian legal Marijuana industry. HMUS will not be directly engaged in the manufacture, importation, possession, use, sale or distribution of marijuana in either Canada or the U.S. Please read the full risk disclosure in the prospectus before investing.

SOURCE Horizons ETFs Management (Canada) Inc.