1. Taxpayers should complete only the information relating to them and their security holdings, and when the form is submitted to Horizons, we will complete the information regarding the investment Corporation.
  2. The several ETFs involved in the various corporate actions merged on different specific dates. One form may only be used for ETFs that converted on one particular date, but can include multiple ETFs that merged on that same date, where applicable.
  3. On Page 2 of Form T2057 under “Information Required” some investors might be unsure of some answers for this section. Horizons can assist in completing some of the answers under this section as they relate directly to the corporate action. Others are specific to the tax payer and must be completed by the taxpayer, prior to sending signed forms to Horizons for counter signature. Questions that must be answered by the tax payer include questions 5, 6, and 8.
    1. Typically, the answer to number 6 is YES. If an investor is unsure of the answer for question 6 “Are any of the properties transferred capital properties?”, although Horizons cannot determine your individual situation, most individual taxpayers will answer YES to this question unless they are required by the CRA to treat such trades on the income account.
  4. For the Description of Shares Received section:
    1. Redemption value per share is the net asset value per share of the ETF at the close of the date on which the merger occurred. This is not typically the same as the closing price on the stock exchange, or what you may see on your account statement. These values can be found here.
    2. Class of Shares is the name of the ETF you hold after the merger, preceded by “common shares of class” (then the ETF name)..
    3. Paid-up-capital should be noted as unknown.
    4. The Shares are non-voting.
    5. Shares are redeemable at the holder’s option.
  5. For Information on the Eligible Property Disposed of and Consideration Received:
    1. Description is the name of the ETF units you held initially.
    2. Fair Market Value is the total value of your position on the date of the corporate merger.
    3. Column A is the total adjusted cost base (ACB) of all of the units you surrendered from that particular fund.
    4. Column B is the total value you intend to report on your taxes as your proceeds. Typically, this will be the same as your ACB, but may be any value as long as it is between the Fair Market Value and the ACB of your position.
    5. Amount to be reported is the total capital gain, if any, that you will report on your tax return. It equals B-A. Typically, this will be zero.
    6. Under consideration received;
      1. Non-share will be zero.
      2. Share/number and class, will be the number of shares you received of the new corporation ETF, and the class is the ETF name.
      3. Fair market value of the consideration is the same as Fair Market value of property disposed of.
  6. The documents must be signed and dated before being submitted to Horizons for completion and counter-signature.
  7. A penalty may be applicable to an investor who is filing this form late, and the penalty section should be completed and payment made on submission to the CRA (after you have received the forms back from Horizons).

The information contained in this section reflects general tax information only and does not constitute, and should not be construed as, tax advice. Investor’s situations may differ, and investors should consult with their tax advisors before making any decisions. The information provided herein is provided as is and Horizons makes no warranty as to the accuracy of the information, and may not update the information as updates become available. Any documents submitted to Horizons will be responded to on a best efforts basis only, and Horizons bears no responsibility for the accuracy of such documents or for the timeliness of such documents or for the timeliness of any response to any such documents submitted to Horizons.

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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 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.

The Horizons Exchange Traded Products include our BetaPro products (the “BetaPro Products”). The BetaPro Products are alternative mutual funds within the meaning of National Instrument 81-102 Investment Funds, and are permitted to use strategies generally prohibited by conventional mutual funds: the ability to invest more than 10% of their net asset value in securities of a single issuer, to employ leverage, and engage in short selling to a greater extent than is permitted in conventional mutual funds. While these strategies will only be used in accordance with the investment objectives and strategies of the BetaPro Products, during certain market conditions they may accelerate the risk that an investment in shares of a BetaPro Product decreases in value. The BetaPro Products consist of our Daily Bull and Daily Bear ETFs (“Leveraged and Inverse Leveraged ETFs”), Inverse ETFs (“Inverse ETFs”) and our BetaPro S&P 500 VIX Short-Term Futures™ ETF (the “VIX ETF”). Included in the Leveraged and Inverse Leveraged ETFs and the Inverse ETFs are the BetaPro Marijuana Companies 2x Daily Bull ETF (“HMJU”) and BetaPro Marijuana Companies Inverse ETF (“HMJI”), which track the North American MOC Marijuana Index (NTR) and North American MOC Marijuana Index (TR), respectively. The Leveraged and Inverse Leveraged ETFs and certain other BetaPro Products use leveraged investment techniques that can magnify gains and losses and may result in greater volatility of returns. These BetaPro Products are subject to leverage risk and may be subject to aggressive investment risk and price volatility risk, among other risks, which are described in their respective prospectuses. Each Leveraged and Inverse Leveraged ETF seeks a return, before fees and expenses, that is either up to, or equal to, either 200% or –200% of the performance of a specified underlying index, commodity futures index or benchmark (the “Target”) for a single day. Each Inverse ETF seeks a return that is –100% of the performance of its Target. Due to the compounding of daily returns a Leveraged and Inverse Leveraged ETF’s or Inverse ETF’s returns over periods other than one day will likely differ in amount and, particularly in the case of the Leveraged and Inverse Leveraged ETFs, possibly direction from the performance of their respective Target(s) for the same period. For certain Leveraged and Inverse Leveraged ETFs that seek up to 200% or up to or -200% leveraged exposure, the Manager anticipates, under normal market conditions, managing the leverage ratio as close to two times (200%) as practicable however, the Manager may, at its sole discretion, change the leverage ratio based on its assessment of the current market conditions and negotiations with the respective ETF’s counterparties at that time. Hedging costs charged to BetaPro Products reduce the value of the forward price payable to that ETF. Due to the high cost of borrowing the securities of marijuana companies in particular, the hedging costs charged to HMJI are expected to be material and are expected to materially reduce the returns of HMJI to unitholders and materially impair the ability of HMJI to meet its investment objectives. Currently, the manager expects the hedging costs to be charged to HMJI and borne by unitholders will be between 10.00% and 45.00% per annum of the aggregate notional exposure of HMJI’s forward documents. The hedging costs may increase above this range. The manager publishes on its website, the updated monthly fixed hedging cost for HMJI for the upcoming month as negotiated with the counterparty to the forward documents, based on the then current market conditions. The VIX ETF, which is a 1x ETF, as described in the prospectus, is a speculative investment tool that is not a conventional investment. The VIX ETF’s Target is highly volatile. As a result, the VIX ETF is not intended as a stand-alone long-term investment. Historically, the VIX ETF’s Target has tended to revert to a historical mean. As a result, the performance of the VIX ETF’s Target is expected to be negative over the longer term and neither the VIX ETF nor its target is expected to have positive long-term performance. Investors should monitor their holdings in BetaPro Products and their performance at least as frequently as daily to ensure such investment(s) remain consistent with their investment strategies.

Horizons Total Return Index ETFs (“Horizons TRI ETFs”) are generally index-tracking ETFs that use an innovative investment structure known as a Total Return Swap to deliver index returns in a low-cost and tax-efficient manner. Unlike a physical replication ETF that typically purchases the securities found in the relevant index in the same proportions as the index, most Horizons TRI ETFs use a synthetic structure that never buys the securities of an index directly. Instead, the ETF receives the total return of the index through entering into a Total Return Swap agreement with one or more counterparties, typically large financial institutions, which will provide the ETF with the total return of the index in exchange for the interest earned on the cash held by the ETF. Any distributions which are paid by the index constituents are reflected automatically in the net asset value (NAV) of the ETF. As a result, the Horizons TRI ETF receives the total return of the index (before fees), which is reflected in the ETF’s share price, and investors are not expected to receive any taxable distributions. Certain Horizons TRI ETFs (Horizons Nasdaq-100 ® Index ETF and Horizons US Large Cap Index ETF) use physical replication instead of a total return swap. The Horizons Cash Maximizer ETF and Horizons USD Cash Maximizer ETF use cash accounts and do not track an index but rather a compounding rate of interest paid on the cash deposits that can change over time.

*The indicated rates of return are the historical annual compounded total returns including changes in per unit value and reinvestment of all dividends or distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any securityholder that would have reduced returns. The rates of return shown in the table are not intended to reflect future values of the ETF or returns on investment in the ETF. Only the returns for periods of one year or greater are annualized returns.