Horizons ETFs Management (Canada) Inc, the manager and trustee of the Horizons US Dollar Currency ETF , listed on the Toronto Stock Exchange under the Canadian dollar (CAD) traded symbol DLR and U.S. dollar (USD) traded symbol DLR.U, has announced today that it intends to consolidate the units of the ETF, as outlined below...
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fter the TSX has closed for trading on Tuesday, January 13, 2015, the units of the ETF will be consolidated on the basis of a ratio (the “Consolidation Ratio”) yet to be determined, such that the net asset value of the units of the ETF traded on the TSX under the ticker symbol DLR.U will equal $10.00 USD upon such consolidation. The units traded under the CAD symbol DLR will undergo the same Consolidation Ratio. The units of the ETF will begin trading on a consolidated basis on Wednesday, January 14, 2015, the effective date of the consolidation.
Based on the closing NAV of December 24, 2014, the Consolidation Ratio would be approximately 1:1.005645, i.e. for every 1.005645 pre-consolidated units outstanding, one (1) consolidated unit would be issued. This rate is provided only as an example of the Consolidation Ratio. The final Consolidation Ratio will be determined at the close of business on Tuesday, January 13, 2015.
When a unit consolidation occurs, the net asset value per unit is increased by the same ratio as the unit consolidation so that the unit consolidation has no impact on the value of the investor’s total unit position. An investor’s cost per unit is also increased by the same ratio as the unit consolidation, although their total cost remains unchanged.
No fractional units will be issued. Where the consolidation results in a fractional unit, the number of post-consolidation units will be rounded down to the nearest whole unit, in the case of a fractional interest that is less than 0.5, or rounded up to the nearest whole number, in the case of a fractional interest that is 0.5 or greater.
Commissions, trailing commissions, management fees and expenses all may be associated with an investment in the ETFs. The ETFs are not guaranteed, their values change frequently and past performance may not be repeated. Please read the prospectus before investing.