Horizons Psychedelic ETF Completes 1:4 Stock Consolidation
The shareholders of the Horizons Psychedelic Stock Index ETF (PSYK) may have noticed a sudden and drastic price change this week. No, unfortunately the whole industry didn’t jump 400%, but rather Horizons did a consolidation on several of their ETFs, including PSYK.
So consider this a public service announcement, meant to help clear things up for investors wondering if there’s a problem with their Questrade or Robinhood apps.
The PSYK ETF has been consolidated at a ratio of 1:4 and “the net asset value per security is increased by the same ratio as the consolidation of the securities so that the consolidation of the securities has no impact on the value of the total position of the investor”.
Following this 1:4 consolidation, the ticker price moved from the $2.95 range to around $11.80.
To see the full press release below.
TORONTO, July 13 2022 /CNW/ — Horizons ETFs Management (Canada) Inc. (“Horizons ETFs“) today announced its intention to consolidate, as the case may be, the shares or units (the “Securities” or each individually a “Security”) of certain ETFs (the “ETF consolidation“) as shown in the table below.
After the close of trading on Friday, July 29, 2022 on the Toronto Stock Exchange and the NEO Exchange, the securities of each consolidating ETF will be consolidated according to the ratio (the “Consolidation ratio“) below and will begin trading on a post-consolidated basis on Tuesday, August 2, 2022, the effective date of the consolidation:
|ETF name||Teleprinter||Consolidation ratio|
|BetaPro Bitcoin ETFs||HBIT / HBIT.U||1:4|
|BetaPro Inverse Leveraged Daily Bear Crude Oil ETF||HOOD||1:4|
|ETF BetaPro Marijuana Companies 2x Daily Bull||HMJU||1:2|
|BetaPro S&P/TSX Capped Energy™ -2x Daily Bear ETF||HED||1:4|
|Horizons Marijuana Life Sciences Index ETF||HMMJ / HMMJ.U||1:2|
|Horizons Psychedelic Stock Index ETF||PSYK||1:4|
|Horizons US Marijuana Index ETF||HMUS / HMUS.U||1:4|
When a consolidation of securities occurs, the net asset value per security is increased by the same ratio as the consolidation of securities so that the consolidation of securities has no impact on the value of the investor’s total position. An investor’s cost per security is also increased by the same ratio as the consolidation of securities, although their total cost remains unchanged.
No fractional Notes will be issued. Where the amalgamation results in a fractional Note, the number of post-amalgamation Notes will be rounded down to the nearest whole Note, in the case of a fractional interest less than 0.5, or rounded down to the nearest whole number. close, in the case of an interest fraction greater than or equal to 0.5.
Horizons ETFs reserves the right to cancel or modify such corporate actions as we deem appropriate, prior to the effective date of Tuesday, August 2, 2022.
Security Holder Information
Securityholders of the consolidating ETFs do not need to take any action to influence these transactions. Securityholders will have their brokerage accounts automatically updated to reflect the consolidations. A securityholder’s broker may take several days to reflect these transactions in the securityholder’s account (the “Settlement periodHowever, the security holder is still able to trade the securities of the consolidating ETFs during this period. If they wish, Horizons ETFs recommends that investors contact their broker by telephone during the settlement period in order to trade the post-consolidation securities.
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 ranges of exchange-traded funds in Canada. The Horizons ETF family of products includes a broadly diversified range of solutions for investors of all experience levels to achieve their investment objectives in various market conditions. Horizons ETFs has over $21 billion in assets under management and 104 ETFs listed on major Canadian exchanges.
Commissions, management fees and expenses all may be associated with an investment in exchange-traded products managed by Horizons ETFs Management (Canada) Inc. (“Horizons Exchange-Traded Products”). Horizons Exchange Traded Products are not guaranteed, their values change frequently and past performance may not be repeated. Certain Horizons exchange-traded products may be exposed to leveraged investment techniques which magnify gains and losses and which may cause greater volatility in value and may be subject to aggressive investment risk. and a risk of price volatility. These risks are described in the prospectus. The prospectus contains important detailed information about the ETF. Please read the relevant prospectus before investing.
For a summary of the risks of investing in the Consolidating ETF, please see the specific risks set out in the applicable prospectus. The Consolidation ETF trades like a stock, its market value fluctuates and may trade at a discount to its net asset value, which may increase the risk of loss.
This communication is for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to buy Horizons Exchange Traded Products and is not and should not be construed as a investment, tax, legal or accounting advice, and should not be relied upon in this regard. Individuals should seek professional advice, where available, regarding any particular investment.
SOURCE Horizons ETFs Management (Canada) Inc.
For further information: Contact Horizons ETFs at 1-866-641-5739 (toll free) or (416) 933-5745, [email protected]