Canadian CANNAINVESTOR Magazine May 2017 - Page 34

Growth Opportunities:

Horizons ETFs anticipates that more stocks will be eligible for inclusion in the Index for HMMJ as more stocks receive public listings and attain sufficient market capitalizations thresholds for inclusion.

Additionally, since this is an industry in its early stages of growth, many of these companies are prime acquisition targets for consolidation within the industry or for larger multi-nationals, particularly established pharmaceutical and tobacco companies, which may be looking to attain a profitable foothold in the legal marijuana industry.

In fact, the industry has already seen some consolidation occur this year, with the recent acquisition of Mettrum Health Corporation by Canopy Growth Corporation.

According to GMP Capital, very few of these companies have the onset impact of Canadian recreational marijuana usage built into their price-to-earnings ratio. If recreational marijuana use is legalized, the potential revenue opportunity/market size opportunity for ACMPR producers could grow more than 12 times the current levels.

Horizons ETFs is a member of Mirae Asset Global Investments. Commissions, management fees, expenses and applicable sales taxes all may be associated with an investment in the Horizons Medical Marijuana Life Sciences ETF managed by Horizons ETFs Management (Canada) Inc. (the “ETF”). The ETF is not guaranteed, its value changes frequently and past performance may not be repeated. The Prospectus contains important detailed information about the ETF. Please read the Prospectus before investing. Solactive is a trade name of Solactive AG (“Solactive”) and has been licensed for use by Horizons. The ETF is not sponsored, endorsed, sold or promoted by Solactive and Solactive makes no representation regarding the advisability of investing in the ETF.