HORIZONS ETFs ANNOUNCES UNITHOLDER MEETINGS FOR PROPOSED CHANGES TO ITS COVERED CALL ETFs

TORONTO, May 17, 2022 /CNW/ - Horizons ETFs Management (Canada) Inc. ("Horizons ETFs" or the "Manager") is announcing special meetings of unitholders of its suite of covered call equity ETFs (the "ETFs"), at which unitholders of each ETF will be asked to consider and vote upon a proposal to approve changes to the investment objective of each ETF (the "Proposed Changes").

Special meetings of unitholders (each, a "Meeting" and collectively, the "Meetings") of Horizons Enhanced Income Equity ETF ("HEX"), Horizons Enhanced Income Energy ETF ("HEE"), Horizons Enhanced Income Financials ETF ("HEF"), Horizons Enhanced Income International Equity ETF ("HEJ"), Horizons Enhanced Income US Equity (USD) ETF ("HEA.U") and Horizons Enhanced Income Gold Producers ETF ("HEP" and together with HEX, HEE, HEF, HEJ and HEA.U, the "ETFs") will be held at the following times on Tuesday, June 21, 2022, solely as virtual (online) meetings by way of live audio webcast:

The decision to propose the changes to the investment objectives follows an extensive review by the Manager of the ETFs. The Manager believes that it is in the best interests of the covered call ETFs and their unitholders to change the investment objectives of the ETFs.

The proposed changes for each ETF's investment objective are as follows:

Proposed Change in Investment Objectives and name for HEX: a change to the fundamental investment objectives to allow HEX to seek to provide: (a) exposure to the performance of the large-cap segment of the Canadian equity market; and (b) monthly distributions of dividend and call option income. To mitigate downside risk and generate income, HEX will employ a dynamic covered call option writing program. If the investment objective change is approved, the name of the ETF is expected to change to the Horizons Canadian Large Cap Equity Covered Call ETF.

Proposed Change in Investment Objectives and name for HEE: a change to the fundamental investment objectives to allow HEE to seek to provide, to the extent possible and net of expenses: (a) exposure to the performance of an index of Canadian companies that are involved in the crude oil and natural gas industry (currently, the Solactive Equal Weight Canada Oil & Gas Index); and (b) monthly distributions of dividend and call option income. To mitigate downside risk and generate income, HEE will employ a dynamic covered call option writing program.  If the investment objective change is approved, the name of the ETF is expected to change to the Horizons Canadian Oil and Gas Equity Covered Call ETF.

Proposed Change in Investment Objectives and name for HEF: a change to the fundamental investment objectives to allow HEF to seek to provide, to the extent possible and net of expenses: (a) exposure to the performance of an index of equal-weighted equity securities of diversified Canadian banks (currently, the Solactive Equal Weight Canada Banks Index); and (b) monthly distributions of dividend and call option income. To mitigate downside risk and generate income, HEF will employ a dynamic covered call option writing program. If the investment objective change is approved, the name of the ETF is expected to change to the Horizons Equal Weight Canadian Bank Covered Call ETF.

Proposed Change in Investment Objectives and name for HEJ: a change to the fundamental investment objectives to allow HEJ to seek to provide, to the extent possible and net of expenses: (a) exposure to the performance of an index of the largest domestic and international non-financial companies listed on the NASDAQ stock market (currently, the NASDAQ-100® Index); and (b) monthly U.S. dollar distributions of dividend and call option income. To mitigate downside risk and generate income, HEJ will employ a dynamic covered call option writing program. HEJ will not seek to hedge its exposure to the U.S. dollar back to the Canadian dollar.  If the investment objective change is approved, the name of the ETF is expected to change to the Horizons NASDAQ-100 Covered Call ETF.

Proposed Change in Investment Objectives and name for HEA.U: a change to the fundamental investment objectives to allow HEA.U to seek to provide: (a) exposure to the performance of the large-cap market segment of the U.S. equity market and (b) monthly U.S. dollar distributions of dividend and call option income. To mitigate downside risk and generate income, HEA.U will employ a dynamic covered call option writing program. HEA.U will not seek to hedge its exposure to the U.S. dollar back to the Canadian dollar. If the investment objective change is approved, the name of the ETF is expected to change to the Horizons US Large Cap Equity Covered Call ETF.

Proposed Change in Investment Objectives and name for HEP: a change to the fundamental investment objectives to allow HEP to seek to provide, to the extent possible and net of expenses: (a) exposure to the performance of an index of equal-weighted equity securities of diversified North American listed gold producers (currently, the Solactive North American Listed Gold Producers Index) and (b) monthly distributions of dividend and call option income. To mitigate downside risk and generate income, HEP will employ a dynamic covered call option writing program. If the investment objective change is approved, the name of the ETF is expected to change to the Horizons Gold Producer Equity Covered Call ETF.

Registered unitholders and duly appointed proxyholders will be able to participate in and vote online in real-time at the Meeting links outlined in the table below:

Further details regarding the Meetings are described in the management information circular dated May 16, 2022, which will be available to unitholders of the ETFs on or about May 20, 2022, at www.sedar.com and www.HorizonsETFs.com.

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 over $22 billion of assets under management and 104 ETFs listed on major Canadian stock exchanges.

Additional information regarding an ETF is contained in its prospectus (as amended), ETF Facts, the most recently filed interim and annual management reports of fund performance and the annual audited and interim unaudited financial statements of each ETF. You should review these documents carefully. Any of the documents of the type referred to above including any material change report (excluding confidential material change reports) and prospectus filed by each ETF and, if applicable, receipted by a securities commission or similar authority in Canada after the date of the Circular will be deemed to be incorporated by reference into this Circular. You may obtain a copy of an ETF's prospectus (as amended) and any of the documents incorporated by reference herein by accessing the SEDAR website at www.sedar.com or the Manager's website at www.HorizonsETFs.com, or at no charge by calling the Manager's toll-free number at 1-866-641-5739 or by faxing a request to the Manager at 416-777-5181.

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.

Certain statements may constitute a forward-looking statement, including those identified by the expression "expect" and similar expressions (including grammatical variations thereof). The forward-looking statements are not historical facts but reflect the author's current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. These and other factors should be considered carefully and readers should not place undue reliance on such forward looking statements. These forward-looking statements are made as of the date hereof and the authors do not undertake to update any forward-looking statement that is contained herein, whether as a result of new information, future events or otherwise, unless required by applicable law.

SOURCE Horizons ETFs Management (Canada) Inc.