Horizons ETF’s last night announced that it will be consolidating its BetaPro Crude Oil 2x Daily Bull ETF (TSX: HOU) as a result of the recent volatility experienced in the crude oil market.
The consolidation will occur on Tuesday, April 28, after the close of market, with shares being converted on a 1 for 20 basis. Horizon’s essentially indicated that it is a result of the low net asset value per share of HOU. Earlier in the day it had indicated that total net assets for the ETF amounted to $0.51 per share as of the close of the futures market at 2:30 PM EST.
No fractional shares are to be issued in relation to the consolidation.
Outside of the consolidation, the company also announced that the management fee for HOU will temporarily be decrease to 0.75% from that of 1.15%, while the fee for BetaPro Crude Oil -2x Daily Bear ETF (TSX: HOD) will remain the same 1.15% of net asset value.
Lastly, as a result of the changes announced yesterday to HOU and HOD in relation to now trading at 1x leverage to the oil markets, HOU will see its name changed temporarily to BetaPro Crude Oil Daily Bull ETF and HOD will see its name changed to BetaPro Crude Oil -1x Daily Bear ETF.
The net asset value for HOD was also announced yesterday, with that figure sitting at $16.30 per share.
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As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.