This document contains the underlying principles and regulations regarding the structure and the operating of the North American Psychedelics Index (the “Index”). Horizons ETFs does not offer any explicit or tacit guarantee or assurance, neither pertaining to the results from the use of the Index nor the Index value at any certain point in time nor in any other respect. The Index is calculated and published by Solactive AG and strives to the best of its ability to ensure the correctness of the calculation. There is no obligation for Horizons ETFs– irrespective of possible obligations to issuers – to advise third parties, including investors and/or financial intermediaries, of any errors in the Index. The publication of the Index by Horizons ETFs and Solactive AG is not a recommendation for capital investment and does not contain any assurance or opinion of Horizons ETFs or Solactive AG regarding a possible investment in a financial instrument based on this Index.
The initial composition of the Index as well as any ongoing adjustment is based on the following rules: Based on the criteria outlined above, the Index Provider determines the securities that are eligible for inclusion in the index. These securities are filtered according to the criteria below which is assessed on the Selection Day, resulting in the final index selection: 1. Minimum Float Market Capitalization of at least CAD 25 million. An existing index member needs to have a Minimum Float Market Capitalization of at least CAD 20 million. Companies eligible for the fast entry require a Minimum Float Market Capitalization of at least CAD 50 million; 2. Minimum 3-Month Average Daily Traded Value of at least CAD 125,000. An existing index member needs to have a Minimum 3-Month Average Daily Traded Value of at least CAD 100,000. The monthly period is defined as follows: the Index Provider considers the period from selection day x in month y to day x in month y-3; and 3. Minimum share price of at least 0.10 CAD.
If a company is eligible for fast entry, it will be added to the index at its Float Market Capitalization as at the close of trading on the Fast Entry Review Day subject to the constraints set forth in Section 1.5 all other Index Components will be reweighted lower on a pro-rata basis based on their index weight on the Fast Entry Adjustment date. The new Index composition will be implemented after the close on the Fast Entry Adjustment Day. If another company becomes eligible for fast entry between the Fast Entry Review Day and the Fast Entry Adjustment Day, another reweighting of the Index Components will take place to include both fast entry company. The fast entry process in progress will be cancelled and a new fast entry process will be started on the new Fast Entry Review Day in respect of both fast entry companies. The new Index composition will be implemented on the Fast Entry Adjustment Day corresponding to the new Fast Entry Review Day. The Index composition will comprise both, the company of the cancelled fast entry process as well as the company from the current fast entry process.
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