Horizons ETFs has completed its final marijuana ETFs rebalance of 2019

TORONTO, Dec. 30, 2019 /CNW/ - Horizons ETFs Management (Canada) Inc. ("Horizons ETFs") has completed the quarterly rebalance of the constituent holdings of the Horizons Marijuana Life Sciences Index ETF ("HMMJ":TSX), the Horizons US Marijuana Index ETF ("HMUS":NEO) and the Horizons Emerging Marijuana Growers Index ETF ("HMJR":NEO).

HMMJ is the world's first ETF offering direct exposure to North American-listed securities that have significant business activities in the marijuana industry. Amid contraction within the marijuana sector, seven constituents were removed from HMMJ's portfolio:

Deletions

Company Name Ticker Exchange Heritage Cannabis Holdings Corp CANN Canadian Securities Exchange Emerald Health Therapeutics EMH TSX Venture Exchange Eve & Co Inc EVE TSX Venture Exchange Fsd Pharma Inc HUGE Canadian Securities Exchange 48North Cannabis Corp NRTH TSX Venture Exchange Radient Technologies Inc RTI TSX Venture Exchange Zenabis Global Inc ZENA Toronto Stock Exchange

HMMJ is an index (or passively managed) ETF, which seeks to replicate, to the extent possible, the performance of the North American Marijuana Index, net of expenses. This index is 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 North American Marijuana Index selects from a current universe of companies that have operations that may include one or more of biopharmaceuticals, medical manufacturing, distribution, bioproducts and other ancillary businesses related to the marijuana industry. Securities within HMMJ's index generally have a market capitalization of greater than CAD $75 million.

"The performance of the Marijuana sector in Q4 was quite disappointing. As a result, the market capitalization of a number of HMMJ's holdings fell below their minimum inclusion threshold, leading to their removal from the index and the ETF," said Steve Hawkins, President and CEO of Horizons ETFs. "Within HMMJ's portfolio, this has resulted in the survival of the fittest: HMMJ's holdings are now more concentrated on companies that are maintaining a strong position within the cannabis industry, despite difficult market conditions."

Rebalancing of the North American Marijuana Index, and consequently HMMJ, occurs each calendar quarter. At that point, all stocks eligible for inclusion are generally re-weighted by their respective market capitalization. The holdings of HMMJ and its current portfolio weights are regularly updated and available at https://www.HorizonsETFs.com/HMMJ.

Performance Update as at December 20, 2019*



1 Month 3 Month 6 Months YTD 1 Year Annualized

Since Inception** HMMJ -4.48% -34.28% -51.52% -34.71% -34.76% 0.73% NAMMAR Index -5.77% -32.43% -51.08% -34.51% -34.55% -6.26% TX60AR Index 0.58% 1.77% 4.58% 22.52% 23.95% 7.08%

* Source: Bloomberg, as at December 20, 2019. ** Since HMMJ's inception on April 4, 2017.

The indicated rates of return 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 securityholder that would have reduced returns. Additionally, index returns do not take into account management, operating or trading expenses that may be incurred in replicating the index. The rates of return above are not indicative of future returns. ETFs are not guaranteed, their values change frequently, and past performance may not be repeated. The indices are not directly investible.

HMUS REBALANCE

Launched in April 2019, 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, net of expenses. This index is designed to provide exposure to the performance of a basket of publicly-listed companies having 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. While some securities may be listed on major North American exchanges, the majority of the securities currently trade on North American exchanges that include but are not limited to the Canadian Securities Exchange and the Aequitas NEO Exchange.

This rebalance resulted in the removal of seven companies:

Deletions

Company Name Ticker Exchange Chemesis International Inc CSI Canadian Securities Exchange Dixie Brands Inc DIXI Canadian Securities Exchange 4front Ventures Corp FFNT Canadian Securities Exchange High Tide Inc HITI Canadian Securities Exchange Rubicon Organics Inc ROMJ Canadian Securities Exchange Sol Global Investments Corp SOL Canadian Securities Exchange 1933 Industries Inc TGIF Canadian Securities Exchange

"We continue to believe that the United States has the potential be the world's largest cannabis market from an investment perspective," said Mr. Hawkins. "Several instances of key federal and state-level legislation have signalled progress on greater cannabis liberalization in the country, including the SAFE Banking Act, the MORE Act, and the legalization of recreational cannabis in Illinois. We are optimistic about what's in store for the United States' cannabis sector in 2020."

Rebalancing of the US Marijuana Companies Index, and consequently HMUS, occurs each calendar quarter. At that point, all stocks eligible for inclusion are generally re-weighted by their respective market capitalization. The holdings of HMUS and its current portfolio weights are regularly updated and available at https://www.HorizonsETFs.com/HMUS.

HMJR REBALANCE

HMJR seeks to replicate, to the extent possible, the performance of the Emerging Marijuana Growers Index, net of expenses. This index is designed to provide exposure to the performance of a basket of primarily North American publicly-listed small-capitalization companies primarily involved in the cultivation, production and/or distribution of marijuana.

HMJR invests in companies with market capitalizations generally between CAD $50 million and CAD $500 million. The ETF's portfolio is 100% invested in marijuana producers and distributors, and it can have exposure to companies outside of North America.

The HMJR portfolio recently expanded to include the following eight constituents:

Additions

Company Name Ticker Exchange Ayr Strategies Inc AYR.A Canadian Securities Exchange C21 Investments Inc CXXI Canadian Securities Exchange Ianthus Capital Holdings Inc IAN Canadian Securities Exchange Medmen Enterprises Inc MMEN Canadian Securities Exchange Cannaroyalty Corp OH Canadian Securities Exchange Seach Medical Group Ltd SEMG Tel Aviv Stock Exchange Sundial Growers Inc SNDL NASDAQ Green Organic Dutchman Holdings TGOD Toronto Stock Exchange

The following 20 companies were removed from HMJR's portfolio on this rebalance:

Deletions

Company Name Ticker Exchange Choom Holdings Inc CHOO Canadian Securities Exchange Creso Pharma Ltd CPH Australian Securities Exchange Chemesis International Inc CSI Canadian Securities Exchange Dixie Brands Inc DIXI Canadian Securities Exchange Delta 9 Cannabis Inc DN Toronto Stock Exchange Emerald Health Therapeutics EMH TSX Venture Exchange Eve & Co Inc EVE TSX Venture Exchange Exmceuticals Inc EXM Canadian Securities Exchange FSD Pharma Inc HUGE Canadian Securities Exchange Harvest One Cannabis Inc HVT TSX Venture Exchange Integrated Cannabis Co Inc ICAN Canadian Securities Exchange James E Wagner Cultivation Cor JWCA TSX Venture Exchange Mjardin Group Inc MJAR Canadian Securities Exchange Mgc Pharmaceuticals Ltd MXC Australian Securities Exchange Ravenquest Biomed Inc RQB Canadian Securities Exchange Sunniva Inc SNN Canadian Securities Exchange Sproutly Canada Inc SPR Canadian Securities Exchange Wildflower Brands Inc SUN Canadian Securities Exchange THC Global Group Ltd THC Australian Securities Exchange Westleaf Inc WL TSX Venture Exchange

Rebalancing of the Emerging Marijuana Growers Index, and consequently HMJR, occurs each calendar quarter. At that point, all stocks eligible for inclusion are generally re-weighted by their respective market capitalization. The holdings of HMJR and its current portfolio weights are regularly updated and available at https://www.HorizonsETFs.com/HMJR.

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 approximately $10 billion of assets under management and 91 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.

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.

For further information: For investor inquiries: Contact Horizons ETFs at 1-866-641-5739 (toll-free) or (416) 933-5745, [email protected]; For media inquiries: Contact Jonathan McGuire, External Communications Manager, Horizons ETFs Management (Canada) Inc., (416) 640-2956, [email protected]

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