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TORONTO – October 19, 2021 – Horizons ETFs Management (Canada) Inc. (“Horizons ETFs”) has completed the quarterly rebalances of the holdings of the Horizons Marijuana Life Sciences Index ETF (“HMMJ”: TSX), the Horizons US Marijuana Index ETF (“HMUS”: NEO) and the Horizons Psychedelic Stock Index ETF (“PSYK”: NEO).

HMMJ REBALANCE

HMMJ is the world’s first ETF to offer direct exposure to North American-listed securities having significant business activities in the marijuana industry. This quarter, five companies were added to HMMJ’s portfolio:

Additions

Company Name Ticker Exchange
Grove Inc.  GRVI NASDAQ
India Globalization Capital IGC NYSE
IPower Inc. IPW NASDAQ
MYMD Pharmaceuticals Inc. MYMD NASDAQ
Power REIT PW  NYSE
 

HMMJ is an index (or passively managed) ETF, which seeks to replicate, to the extent possible, the performance of the North American Marijuana Index (the “HMMJ Index”), net of expenses. The HMMJ Index, which rebalances quarterly, has been designed to provide exposure to the performance of a basket of North American publicly listed life sciences companies with significant business activities in the marijuana industry. The HMMJ Index selects from a current universe of companies that have operations that may include one or more offerings of biopharmaceuticals, medical manufacturing, distribution, bio-products and other ancillary businesses related to the marijuana industry.

Devoid of momentum south of the border, the Canadian marijuana sector has largely languished, with valuations further exasperated by recent market volatility,” said Steve Hawkins, President and CEO of Horizons ETFs. “Within a more challenging business environment, Canada’s licensed producers are choosing to innovate, merge and consolidate, as well as pivot to more lucrative strategies and verticals. In time, these moves will likely serve to help affirm the stability and profitability of Canada’s marijuana sector.”

The holdings of HMMJ and its current portfolio weights are regularly updated and available at https://www.HorizonsETFs.com/HMMJ. It is important to note that HMMJ may not hold all of the constituents of the index. Horizons ETFs, through the use of a stratified sampling strategy, may invest in securities that closely match the investment characteristics of the HMMJ Index, provided they are consistent with the ETF's investment objectives and strategies.

Performance Update as at September 30, 2021*

  1
Month
3
Month
6
Month
YTD 1
Year
3
Year
Annualized
Since Inception**
HMMJ -12.74% -26.63% -36.69% -1.24% 36.21% -27.06% 0.18%
 

Source: Bloomberg, as at September 30, 2021. **Since HMMJ’s inception on April 4, 2017.

HMUS REBALANCE

HMUS is the world’s first U.S.-focused marijuana index ETF. HMUS seeks to replicate, to the extent possible, the performance of the US Marijuana Companies Index (the “HMUS Index”), net of expenses. This HMUS Index, which rebalances quarterly, has been designed to provide exposure to the performance of a basket of publicly listed companies with significant business activities in, or significant exposure to, the marijuana or hemp industries in the United States. Constituents of this index are selected from Canadian and U.S. exchanges.

This rebalance resulted in five companies being added to the HMUS portfolio:

Company Name Ticker Exchange
Ceres Acquisition Corp. CERE NEO
Glass House Brands Inc. GLAS NEO
Grove Inc. GRVI NASDAQ
iAnthus Capital Holdings Inc. IAN CSE
India Globalization Capital IGC NYSE
 

“While it looks like America’s ‘marijuana moment’ won’t happen in 2021, there are still several initiatives underway that are paving the way for broader liberalization in the United States,” said Mr. Hawkins. “The latest Congressional approval of the SAFE Banking Act advances the bill to the U.S. Senate and if passed there, would allow cannabis companies to bank and publicly list on market exchanges in the United States, creating an incalculable opportunity for U.S. multi-state operators to scale-up within the country and become broadly accessible and investable for 330 million Americans.”

The holdings of HMUS and its current portfolio weights are regularly updated and available at https://www.HorizonsETFs.com/HMUS. HMUS may not hold all of the constituents in its index. Horizons ETFs, through the use of a stratified sampling strategy, may invest in securities that closely match the investment characteristics of the HMUS Index, provided they are consistent with the ETF's investment objectives and strategies.

Performance Update as at September 30, 2021*

  1
Month
3
Month
6
Month
YTD 1
Year
Annualized
Since Inception**
HMUS -3.85% -19.63% -28.46% -12.32% 45.59% -20.83%
 

Source: Bloomberg, as at September 30, 2021. **Since HMUS’ inception on April 17, 2019.

PSYK REBALANCE

PSYK was the world’s first ETF to offer direct exposure to North American publicly listed securities that have significant business activities in the psychedelics industry.

This quarter, one security was added to PSYK’s portfolio and the North American Psychedelics Index (the “PSYK Index”), as follows:

Company Name Ticker Exchange
PharmaTher Holdings Ltd. PHRM CSE
 

From Elon Musk to governments across the globe, there is a growing awareness and acceptance of the therapeutic potential of psychedelics, which is leading to the dismantling of regulatory barriers that previously restricted clinical research and development of medical applications,” said Steve Hawkins, President and CEO of Horizons ETFs. “While the recent volatility is typically a factor within any emerging sector, the approval or licensing of a single psychedelic drug or therapy could ‘open the floodgates’ and result in a major boost for the industry at large.”

PSYK is an index (or passively managed) ETF, which seeks to replicate, to the extent possible and net of expenses, the performance of a market index that is designed to provide exposure to the performance of a basket of North American publicly-listed life sciences companies having significant business activities in, or significant exposure to, the psychedelics industry. Currently, the ETF seeks to replicate the performance of the PSYK Index, net of expenses. The PSYK Index is a proprietary index owned and operated by Horizons ETFs with Solactive AG as the independent calculation agent.

The holdings of PSYK and its current portfolio weights are regularly updated and available at https://www.HorizonsETFs.com/PSYK. PSYK may not hold all of the constituent names in the Index. Horizons ETFs, through the use of a stratified sampling strategy, may invest in securities that closely match the investment characteristics of the PSYK Index, provided they are consistent with PSYK's investment objectives and strategies.

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 $19 billion of assets under management and 98 ETFs listed on major Canadian stock exchanges.

For media inquiries:
Contact Mark Noble
Executive Vice President, ETF Strategy
Horizons ETFs Management (Canada) Inc.
(416) 640-8254
mnoble@horizonsetfs.com

Commissions, management fees and expenses all may be associated with an investment in Horizons US Marijuana Index ETF, the Horizons Marijuana Life Sciences Index ETF and the Horizons Psychedelic Stock Index ETF (the “ETFs”) managed by Horizons ETFs Management (Canada) Inc. The ETFs are not guaranteed, their values change frequently and past performance may not be repeated. The prospectus contains important detailed information about the ETFs. Please read the prospectus before investing.
 
*The indicated rates of return for HMMJ and HMUS are the historical annual compounded total returns, including changes in unit value and reinvestment of all distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any security holder that would have reduced returns. The ETFs are not guaranteed, their values change frequently, and past performance may not be repeated.
 
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.
 
There are risks associated with this product. PSYK is expected to invest in, and indirectly derive revenues from, companies in the psychedelics industry engaged in legal activities involving psychedelic drugs and substances. While the medical and adult use of certain psychedelic drugs and substances are generally prohibited under U.S. federal law, despite this prohibition, a limited number of states have either sought to decriminalize or authorize the medical use of certain psychedelic drugs and substances in limited circumstances. Clinical trials involving psychedelic drugs and substances are, however, permitted, provided they comply with both state and federal laws applicable to such trials. Psychedelic drugs and substances in Canada are primarily regulated under the Controlled Drugs and Substances Act (the “CDSA”), the Food and Drug Act and the regulations promulgated thereunder. The medical use of certain psychedelic drugs and substances remain illegal under Canadian federal law unless discretionary exemptions are granted under the CDSA, while a limited number of other drugs and substances may be prescribed by a health care practitioner to patients under their care. Adult recreational use of psychedelic drugs and substances remains generally prohibited under the CDSA. Commercial activities involving psychedelic drugs and substances are permitted in Canada by parties who hold the required federal regulatory approvals and licences; however, distribution and sales opportunities for psychedelic drugs and substances are heavily restricted at this time. PSYK will passively invest in companies engaged in legal activities involving psychedelic drugs and substances in Canada and the U.S. where applicable laws permit such activities. PSYK will not be directly engaged in the manufacture, importation, possession, use, sale or distribution of psychedelic drugs or substances in either Canada or the U.S.
 
The ETF, through the ownership of life science companies in the psychedelic industry, may also have some exposure to the legal marijuana market in Canada, and the hemp industry and/or 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. However, the ETF will not be directly engaged in the manufacture, importation, possession, use, sale or distribution of hemp or marijuana in either Canada or the U.S. Please read the full risk disclosure in the prospectus before investing.
 
Certain statements may constitute a forward-looking statement, including those identified by the expression “expect” and similar expressions (including grammatical variations thereof). The forward-looking statements are not historical facts but reflect the author's 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 such forward looking statements. These forward-looking statements are made as of the date hereof and the authors 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.
 
Neither Horizons ETFs nor Solactive AG shall have any liability, contingent or otherwise, to any person or entity for the quality, accuracy, timeliness and/or completeness of the Index, the data of the Index, or for delays, omissions or interruptions in the delivery of the Index or data related thereto. Neither Horizons ETFs nor Solactive AG makes any warranty, express or implied, as the results to be obtained by any person or entity in connection with any use of the Index, including but not limited to the trading of or investments in PSYK or related to the Index, any data related thereto or any components thereof. Neither Horizons ETFs nor Solactive AG makes any express or implied warranties, and hereby expressly disclaims all warranties of merchantability or fitness for a particular purpose or use with respect to the Index or any data related thereto. Without limiting any of the foregoing, in no event shall Horizons ETFs or Solactive AG have any liability for any special, punitive, indirect, or consequential damages (including lost profits), in connection with any use by any person of the Index, PSYK or any products related thereto, even if notified of the possibility of such damages. Neither Horizons ETFs nor Solactive AG is an advisor as to legal, taxation, accounting, regulatory or financial matters in any jurisdiction, and is not providing any advice as to any such matter.

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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 value changes frequently and past performance may not be repeated. Certain ETFs 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.

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. BetaPro Bitcoin ETF (“HBIT”), and BetaPro Inverse Bitcoin ETF (“BITI”), which are a 1X ETF, and an up to -1X ETF, respectively, as described in the prospectus, are speculative investment tools that are not conventional investments. Their Target, an index which replicates exposure to rolling Bitcoin Futures and not the spot price of Bitcoin, is highly volatile. As a result, neither ETF is intended as a stand-alone investment. There are inherent risks associated with products linked to crypto-assets, including Bitcoin Futures. While Bitcoin Futures are traded on a regulated exchange and cleared by regulated central counterparties, direct or indirect exposure to the high level of risk of Bitcoin Futures will not be suitable for all types of investors. An investment in any of the BetaPro Products is not intended as a complete investment program and is appropriate only for investors who have the capacity to absorb a loss of some or all of their investment. Please read the full risk disclosure in the prospectus before investing. 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.