Horizons ETFs Management is to change the name of the Horizons Medical Marijuana Life Sciences ETF to “Horizons Marijuana Life Sciences Index ETF” effective on or about 15 June, 2017.
Its primary ticker symbol, HMMJ, will remain the same. HMMJ is the first ETF in the world that offers direct exposure to North American-listed companies with significant business activities in the marijuana industry.
HMMJ is an index tracking (or passively managed) ETF, which seeks to replicate, to the extent possible, the performance of the North American Medical Marijuana Index, net of expenses. The Index provides exposure to the performance of a basket of North American publicly listed life sciences companies, and other companies with significant business activities in the marijuana industry. The Index selects securities from issuers that are listed on North America’s public equity markets with business activities that include biopharmaceuticals, medical manufacturing, distribution, bio-products, and other businesses ancillary to the marijuana industry
In connection with the change in name of HMMJ, in order to meet its investment objective, HMMJ’s investment strategy will, subject to regulatory approval, be modified to reflect the proposed change in federal law to legalise recreational use of marijuana in Canada, by allowing the ETF to now own a slightly broader and diversified portfolio of marijuana-focused companies beyond those focused solely in the medical marijuana industry. In addition, although HMMJ will not invest in any constituent issuers that are primarily focused on serving the medical or recreational marijuana market in the United States, or the recreational marijuana market in Canada, unless and until such time as it becomes legal, HMMJ’s investment strategy will, subject to regulatory approval, be modified to permit the HMMJ to invest in marijuana companies which derive some portion of their revenue, currently or in the future, from the medical and/or recreational cannabis industry in certain US states where cannabis use has been legalised by state law, notwithstanding that the use, possession, sale, cultivation and transportation of cannabis remains illegal under US federal law.
“The North American marijuana industry continues to evolve rapidly from a regulatory and issuer perspective. We want to ensure that HMMJ has the flexibility to own a diversified portfolio of marijuana industry stocks so it can meet its investment objectives,” says Steve Hawkins, President and Co-CEO of Horizons ETFs. “We have also changed the name of HMMJ to reflect that the ETF will become more than just a medical marijuana ETF, as it will have the potential to invest in a range of recreational cannabis-focused opportunities as applicable laws evolve in both Canada and the United States”.
Horizons ETFs is also pleased to announce the listing of HMMJ in US dollars, effective on or about 19 June, 2017. This will provide Canadian investors with the option of investing in HMMJ using Canadian or US denominations. US dollar-denominated units of HMMJ will trade under the ticker symbol “HMMJ.U”. Both the HMMJ and HMMJ.U tickers refer to the same exchange traded fund. The only difference between the two listings is the currency in which they trade.
