TORONTO, April 28, 2020 /CNW/ - Horizons ETFs Management
(Canada) Inc. (the
"Manager") announces that, further to the Manager's press
releases announcing certain amendments to the rolling methodology
employed by the ETFs on April 22,
2020, the BetaPro Crude Oil 2x Daily Bull ETF1
("HOU") and the BetaPro Crude Oil -2x Daily Bear
ETF2 ("HOD", and together with HOU, the
"ETFs") effective as of 2:30 p.m.
(EST) today, will no longer track the July futures contract
as previously announced. Instead, due to the continuing volatility
in the crude oil futures markets, negotiations with the ETF's
counterparties, and the resulting changes to the ETF's
operations, at 2:30 p.m. (EST) today,
100% of the underlying exposure of the ETFs will roll to the
September crude oil futures contract.
With respect to subsequent roll dates, the ETFs will no longer
roll to the secondary futures contract on the 10th trading day of
each month as previously announced. Instead, the Manager will
assess the situation on an ongoing basis and announce any future
roll dates and schedules, whether monthly, quarterly or otherwise,
by issuance of a press release and by way of updates on the
Manager's website www.horizonsetfs.com.
A prospectus amendment that reflects the changes set out above
will be filed following the date of this press release, and will be
available at www.sedar.com or the Manager's website at
www.horizonsetfs.com.
Continued Suspended Subscriptions (commenced April 21, 2020)
On April 21, 2020, the Manager
announced it will not be accepting subscriptions for new shares of
HOU or HOD until further notice. Redemptions will continue to be
accepted in the normal course. It is imperative to note that
units of HOU and HOD have traded, and are expected to continue to
trade, at a substantial premium to their net asset value while
subscriptions of new shares are suspended. The Manager continues to
strongly discourage investors from purchasing shares of HOU and HOD
at this time.
Both HOU and HOD have been trading since April 21, 2020, at prices that are not reflective
of their underlying net asset value. The Manager anticipates this
will persist while the ETFs remain closed to new subscriptions.
Please visit the Manager's website www.horizonsetfs.com to obtain
the net asset value for the ETFs.
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1 To
be renamed the BetaPro Crude Oil Daily Bull ETF, with the name
change expected to be effective on the Toronto Stock Exchange on
April 29, 2020, and to undergo a share consolidation on a 1:20
basis, effective on the same date.
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2 To
be renamed the BetaPro Crude Oil -1x Daily Bear ETF, with the name
change expected to be effective on the Toronto Stock Exchange on
April 29, 2020.
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The Manager also anticipates that the ETFs will be able to
re-open to subscriptions for new shares when the extreme market
volatility in crude oil futures markets subsides and when it is
able to obtain additional underlying exposure for the ETFs in the
normal course.
Investing in shares of the ETFs can be speculative, can involve
a high degree of risk and may only be suitable for persons who are
able to assume the risk of losing their entire investment.
Potential investors in these ETFs are reminded to read the
prospectus, as amended from time to time, and all information
available on www.sedar.com before investing. Investors should
continue to monitor their investment daily and, as previously
announced by the Manager, note that the ETFs are no longer expected
to achieve their stated investment objectives.
The Manager will advise as soon as there are any further
developments with respect to the ETFs.
SOURCE Horizons ETFs Management (Canada) Inc.