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Breaking News:Horizons Medical Marijuana Life Sciences ETF Gets the Green Light

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Cannabis is going mainstream…

Starting next week, investors will be able to invest in a cannabis ETF after Horizons ETFs Management announced plans to launch the Horizons Medical Marijuana Life Sciences ETF(HMMJ).

The Toronto Stock Exchange (TSX) has conditionally approved the units to be listed and traded on April 5th under the ticker symbol HMMJ. The initial unit offering of units will close after the market closes on April 4th.

HMMJ will be the first ETF to offer direct exposure to North American-listed stocks levered to the medical cannabis bioengineering and production. HMMJ is an index (or passively managed) ETF, designed to provide exposure to a basket of North American publicly traded companies with significant business activities in the cannabis industry.

Levered to the World’s Fastest Growing Industry

Horizons ETFs and its affiliate AlphaPro Management are financial services companies offering the Horizons ETFs family of ETFs. The Horizons fund family includes a broadly diversified range of investment tools with solutions for investors. Horizons ETFs has more than $7 billion of assets under management.

The Medical Marijuana Life Sciences ETF is designed to be a liquid and investable index of publicly listed life sciences companies and other firms focused on the cannabis industry. The index selects from a universe of publicly-listed North American companies that have operations that may include one or more of the following: biopharmaceuticals, medical manufacturing, distribution, bio-products and other ancillary businesses to the cannabis industry.

The index only includes stocks that meet minimum asset and liquidity thresholds. The index is rebalanced quarterly on a market-capitalization basis and capped so that no single stock can exceed 10% of the portfolio’s weight when rebalanced.

A Solution to Satisfy Investor Demand

Horizons ETFs President and Co-CEO Steve Hawkins said, “The medical marijuana industry is rapidly growing in North America as legislators allow or consider allowing more legal uses of marijuana and marijuana-related products, particularly medical marijuana usage. HMMJ is a way for investors to directly access the medical marijuana and life sciences industry through a transparent, low-cost ETF that holds a diversified basket of companies.”

Hawkins added, “Given the recent high returns generated by medical marijuana companies, investors are clearly attracted to the industry. We feel that the methodology of the North American Medical Marijuana Index will maximize the risk/reward opportunity for investors by ensuring the companies in the Index meet important liquidity and asset requirements, so that the stocks in the Index are the leaders in the Medical Marijuana industry.”

An Expected Outcome

The global cannabis industry is the fastest growing industry in the world and Canada has been the country leading this charge. This announcement is not surprising especially since it comes after the Liberal government provided clarity around the opening of a recreational cannabis market.

Although this seems like an attractive opportunity due to the lower risk associated with ETFs, investors should conduct due diligence into the companies listed in this fund before investing.

The index is up 146.3% over the past year as an increasing number of states in the US legalize the possession and distribution of marijuana for medical purposes. Legal marijuana sales are projected to reach $20.6 billion by 2020, with a compound annual growth rate of 29%, according to Arcview Market Research, a San Francisco-based cannabis research firm.

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  • TORONTO – March 28, 2017 – Horizons ETFs Management (Canada) Inc. (“Horizons ETFs”) is pleased to announce that it has filed its final prospectus to launch the Horizons Medical Marijuana Life Sciences ETF (“HMMJ”). Units of the exchange traded fund (“ETF”) have been conditionally approved for listing by the Toronto Stock Exchange (“TSX”) and are slated to begin trading on April 5, 2017, under the ticker symbol HMMJ.

    HMMJ will be the first ETF that offers direct exposure to North American-listed stocks that are involved with medical marijuana bioengineering and production. HMMJ is an index (or passively managed) ETF, which seeks to replicate, to the extent possible, the performance of the North American Medical Marijuana Index (“the Index”), net of expenses. The Index is designed to provide exposure to the performance of a basket of North American publicly traded companies with significant business activities in the marijuana industry.

    “The medical marijuana industry is rapidly growing in North America as legislators allow or consider allowing more legal uses of marijuana and marijuana-related products, particularly medical marijuana usage,” said Steve Hawkins, President and Co-CEO of Horizons ETFs. “HMMJ is a way for investors to directly access the medical marijuana and life sciences industry through a transparent, low-cost ETF that holds a diversified basket of companies.”

    The North American Medical Marijuana Index is designed to be a liquid and investable index of equity securities of publicly listed life sciences companies, and other firms, with business activities in the marijuana industry. The Index selects from a current universe of publicly-listed North American companies that have operations that may include one or more of biopharmaceuticals, medical manufacturing, distribution, bioproducts and other ancillary businesses to the marijuana industry.

    Only stocks that meet minimum asset and liquidity thresholds are eligible for inclusion in the Index. Stocks in the Index are rebalanced quarterly on a market-capitalization basis, and capped so that no single stock can exceed 10% of the weight of the Index when rebalanced.

    “Given the recent high returns generated by medical marijuana companies, investors are clearly attracted to the industry,” said Mr. Hawkins. “We feel that the methodology of the North American Medical Marijuana Index will maximize the risk/reward opportunity for investors by ensuring the companies in the Index meet important liquidity and asset requirements, so that the stocks in the Index are the leaders in the Medical Marijuana industry.”

    HMMJ will close the initial offering of units to its designated broker after the close of business on April 4, 2017, prior to its initial listing of units on the TSX on April 5, 2017.

    About Horizons ETFs Management (Canada) Inc.
    Horizons ETFs Management (Canada) Inc. and its affiliate AlphaPro Management Inc. are innovative financial services companies offering the Horizons ETFs family of exchange traded funds. The Horizons ETFs family includes a broadly diversified range of investment tools with solutions for investors of all experience levels to meet their investment objectives in a variety of market conditions. Horizons ETFs has more than $7 billion of assets under management. With 76 ETFs listed on the Toronto Stock Exchange, the Horizons ETFs family makes up one of the largest families of ETFs in Canada. Horizons ETFs Management (Canada) Inc. and AlphaPro Management Inc. are members of the Mirae Asset Global Investments Group.

  • Canadians will be able to invest in a basket of marijuana companies when the first marijuana exchange-traded fund launches next week, helping investors diversify their exposure to the volatile and frothy sector.

    The Horizons Medical Marijuana Life Sciences ETF (TSX: HMMJ) is slated to begin trading Tuesday on the Toronto Stock Exchange. It will include 11 Canadian-listed stocks and four listed in the United States.

    Exchange-Traded Funds (ETFs), which track the performance of a specific index or sector, have proliferated in recent years.

    And while there are ETFs for everything from cybersecurity to construction, Horizons needed to jump over an unusual number of regulatory hurdles to add marijuana to the mix, said Steve Hawkins, president and Co-CEO of Horizons ETFs.

  • Canada-based Horizons ETFs has filed its final prospectus to launch the Horizons Medical Marijuana Life Sciences ETF (HMMJ), which has been granted conditional approval for listing on the Toronto Stock Exchange on 5 April 2017.

    The fund will be the first ETF to offer direct exposure to North American-listed stocks that are involved with medical marijuana bioengineering and production, through tracking the North American Medical Marijuana Index. Constituents must have a business strategy focused on the marijuana or hemp industry, and only stocks that meet minimum asset and liquidity thresholds are eligible for inclusion in the index. The index is rebalanced quarterly on a market-capitalization basis, and capped so that no single stock can exceed a weight of 10% at time of rebalance. It currently has 27 constituents.

    Companies in the index may have operations that include one or more of biopharmaceuticals, medical manufacturing, distribution, bioproducts and other ancillary businesses to the marijuana industry.

    “The medical marijuana industry is rapidly growing in North America as legislators allow or consider allowing more legal uses of marijuana and marijuana-related products, particularly medical marijuana usage,” said Steve Hawkins, President and Co-CEO of Horizons ETFs. “HMMJ is a way for investors to directly access the medical marijuana and life sciences industry through a transparent, low-cost ETF that holds a diversified basket of companies.”

    The index is up 146.3% over the past year as an increasing number of states in the US legalize the possession and distribution of marijuana for medical purposes. Legal marijuana sales are projected to reach $20.6 billion by 2020, with a compound annual growth rate of 29%, according to Arcview Market Research, a San Francisco-based cannabis research firm.

    “Given the recent high returns generated by medical marijuana companies, investors are clearly attracted to the industry,” said Hawkins. “We feel that the methodology of the North American Medical Marijuana Index will maximize the risk/reward opportunity for investors by ensuring the companies in the index meet important liquidity and asset requirements, so that the stocks in the index are the leaders in the Medical Marijuana industry.”

  • It is often said in the exchange traded funds (ETFs) business that “all of the good ideas are taken.” Well, maybe not. The legal marijuana industry is booming in the U.S. and, as of now, there hasn’t yet been a dedicated ETF on the market, but it seems funds are starting to catch up with the trend.

    In February ETF Managers Group (ETFMG), a New Jersey-based company that helps ETF sponsors bring their products to market, filed plans for the Emerging AgroSphere ETF. Assuming the Emerging AgroSphere ETF comes to life, it will track an index created by BE Asset Management. On March 28th, Horizons ETFs announced that Horizons Medical Marijuana Life Sciences ETF (HMMJ) had been conditionally approved for listing by the Toronto Stock Exchange, and will begin trading on April 5th, 2017.

    The new ETF will replicate the performance of the North American Medical Marijuana Index, as will the Emerging AgroSphere ETF. The Index is designed to provide exposure to the performance of a basket of North American publicly traded companies with significant business activities in the marijuana industry.

    Interested investors should note that both funds, again assuming both hits the market, will focus on medical marijuana. That means the ETF will not be a play on the highly lucrative recreational marijuana markets that are popping up across the U.S. Colorado is generating handsome tax revenue from legal recreational marijuana and the same could hold true for other states in the future. For example, during the 2016 elections, Californians voted to legalize marijuana for recreational use, and the largest U.S. state by population will see its first recreational pot stores open in 2018.

    “Currently, 28 states plus the District of Columbia have laws and/or regulations that recognize, in one form or another, legitimate medical uses for cannabis and consumer use of cannabis in connection with medical treatment,” according to a ETFMG filing with the SEC. “Even in those states in which the use of medical marijuana has been legalized, its sale and use remains a violation of federal law.”

    Unlike Horizons Medical Marijuana Life Sciences ETF (HMMJ), the ETFMG filing did not contain a proposed ticker or expense ratio for the marijuana ETF. Those are often signs that a new ETF is close to coming to market, so it could be a while before investors can access the Emerging AgroSphere ETF.

  • Roughly two weeks before April 20, investors with a craving for marijuana exposure will have a new instrument with which to get it in their portfolios.

    The first exchange-traded fund with a marijuana focus, the Horizons Medical Marijuana Life Sciences ETF, has been conditionally approved for listing by the Toronto Stock Exchange. It is scheduled to debut on April 5 under the ticker symbol HMMJ. According to Horizon ETF Management, it will be the first ETF “that offers direct exposure to North American-listed stocks that are involved with medical marijuana bioengineering and production.”

    The marijuana industry has seen surging growth of late. Sales grew 30% in 2016, according to Arcview Market Research, and they are seen tripling in four years.The growth comes as more and more people approve of legalizing marijuana, including for recreational purposes. In 2016, roughly 60% of Americans said they favored the legalization of recreational marijuana, as the industry gained support in invalidating the war on drugs and seven states voted to legalize pot for recreational or medical use.

    “The medical marijuana industry is rapidly growing in North America as legislators allow or consider allowing more legal uses of marijuana and marijuana-related products, particularly medical marijuana usage,” Steve Hawkins, president and co-chief executive officer of Horizons ETFs, said in a statement. “Given the recent high returns generated by medical marijuana companies, investors are clearly attracted to the industry.”

    Other ETF providers have proposed similar funds. In February, ETF Managers Trust filed paperwork with regulators for the Emerging AgroSphere ETF, which would also focus on medical marijuana companies, as well as ones involved in the production or sale of products derived from hemp. It wasn’t clear when that fund might begin trading, and a representative for ETF Managers said the firm couldn’t comment.

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