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.
The author has no securities or affiliations related to any organization mentioned. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
48 Responses
We all are just reacting to our losses and then go back and forget everything. This will not give any result, other than wasting time. First step, make some one in-charge and then make a complaint together to hire a lawyer. You can also start a petition on Change.org.
Thanks
Folks, Yes I agree with filing a complaint with the OSC, but I believe that we need a champion Legal Firm that specializes in suing companies like HOrizon Beta Pro Scammers. I am sure we would all agree to a significant contingency amount for a law firm that got us some of our money back and teach these B”’tards a lesson. Bob
Horizons management should go to jail, they are happy to take money from you at 2 x WTI drop when it’s going down, and when WTI starts going back up, they give nothing back just keep taking more. I lost a bundle on this crap
That is what, I suggested. Nobody replied back other than you. If more people joins, we can write a complaint and then send scanned copies to everyone who wants to joining get singed with their phone number and email id and send to the IIROC. If someone have other idea, please do share.
Thanks
Vick Duggal
Hey everyone, can you forward your email so we can band together resulting in a law suit. Iiroc and osc let this happen and fighting against alone will probably be a loss for us. Thank you Ibrahim H
Ibrahim, I agree and sent a message to that effect, not posted yet. My email is bob@metalcraftmarine.com. I agree the only way to get any money back is to sue them.With the large number of investors involved it should be easy to geta legal firm to take them on based on a contingency commission.
Bob Clark,please keep me informed.
Thank you
Did anything ever happen with this?
hi Ibrahim, please loop me in (yulkin2002@yahoo.com). Have you had any luck with the law suit?
Where to fill the complain?
Do you guys join together?
I’m with you
Muhammad Siddiqui
I almost lost my 50% of investment in hou.We should file a complaint because how can a 2x bull ETF fall more than 50% when underlying oil price has increased by more than 100% over the same period.
This ETF is certainly a scam!!
I almost lost all my money for HOU! If the company follow the rule, I don’t complain, but the company change the rule which is good for them and bad for us, they just steal our money to pay their lost
Hi all,
We all are complaining and filing individual complaints. Why not some of us share the email and then we include eveyone’s name and contact id and send a formal complaint.
Thanks
Vick Duggal
Can I still file a complain after taking my loss?
I got out too late, I lost a chunk of my family savings. Why should the government allow such daylight robbery in Canada. OSC should investigate them.
hi OVIE ! dON’T U KNOW ,THE GOVERNMENT ARE GANGSTERS AND ARE ON THEIR SIDE BECAUSE CERTAIN POLITICIANS ARE GETTING KICKBACKS.. WOULD U EXPECT THE MAFIA TO NVESTIGATE THEMSELVES. dON’T LOOK TO THE GOVERNMENT OF CANADA OR THEIR APPOINTED LACKEY JUDGES TO PROVIDE JUSTICE FOR US SHAREHOLDERS . iTS NOT GOING TO HAPPEN !!!!!!!!!!!!!!!!!!!!!
I think we all get scared with this shares, can you tell me what to do, I think we are in need for this money now
I have filed a complaint as well.
I totally agree with you guys. I lost more than 50k on this crap. I got confused about why the stock price declined a lot with wti price increased.
I also talked to OSC and gave them the complaint over phone.
DID U GET A REPLY FROM THE OSC?
I agree our money should be up instead of down as June contract goes from $6.5 on April 20th to $17.15 now, 150% up not -50% plus commission management fees and conversion rate, this is truly a scam. They created this to such everyone money. Last time they reverse split 10-1 when oil was $21 and HOU was 57 cent to $5.7, now oil $17 , $3 down and HOU is 0.9 cent which is closer to 900% down, and they are talking about consolidate 20-1, I don’t understand. They makes millions of dollars from this
I sent my complain and let’s act together.
I just sent my complain to InvestorInquiries@iiroc.ca and Inquiries@OSC.Gov.on.ca as suggested. Let’s act together!
After reading all the doclosures I understand the following. Many changes have been implemented in last few days. 1) The undelying contract has been changed to July contracts instead of June . So need to track July contract price. 2) The new subscriptions have stopped so what price you see if just on the secondary market and at a premium to NAV calculated at 2.30 pm every day for publishing. It was 0.37/unit on Apr 21st (oil price $20.58) , 0.51 on Apr 22nd (oil price $20.92)and 0.53 on Apr 23rd. (Oil price $21.89) and it alignes well with the NAV 3) The 2X objective has been temporarily change to 1X. So unlikely to see drastic changes till that is changed back to 2X.
In my opinion unless we see a base level change in the oil price , expectation of future growth creating more premium , we would not see substantial change in the HOU price.
What do you mean by substantial change in the HOU price. Further downward movement? Is there any chance of this stock going up?
G. Tian
I’ve just sent a complaint to InvestorInquiries@iiroc.ca and Inquiries@OSC.Gov.on.ca as suggested. I thought I was going to do very well investing in HOU when oil went negative and instead saw it go way down….very confusing!!
Hi, What do we expect from these complains? I doubt we can get our money back this way, I just started a Group on FB – https://www.facebook.com/groups/2670082026544559/?ref=group_header. Lets get together and see what can we do jointly.
Il faut faire de quoi, j ai acheter dans le plus bas de tous les temps et je pert 95%
moi aussi je suis dans la meme situation que toi
I guess the ETF company lost their investments at oil industry and want all of us to pay their loses
I agree with all of you! We need to get together and complain! Where should be the starting point for us?
I just lost 13k with this stock (HOU) in 2 days, UWT did the same thing and it stopped trading and paid shareholders 16 cents
Everyone band together and make a formal complaint to the IIROC. This is not right. We should be up 90% not down 50% over there last two days. https://www.iiroc.ca/investors/makingacomplaint/Pages/default.aspx
Agree, the price has been up from -40 to 17, the price should be up
I am in, Lost tone of money on this crap. How on earth can both HOU and HOD be in negative with 70% down on one and 20% down on another? Scam big time, Filled complain, but unanswered so far. We should all get together and file joint complain.
HI ! I TOTALLY AGREE WITH YOU. WHERE THE HELL IS THE OSC AT. WE INVESTORS NEED TO TAKE ACTION IMMEDIATELY AND BEGIN LITIGATION AGAINST THESE SCAMMERS
It should be investigated, all the money flow and the contracts and persons involved have to be reviewed to 3 degree using BI tools.
I think i will put some time on it as i found some intetesting points.
let’s get together and complain jointly. We can’t win on our own. This is obviously a scam. Is there a website for investors to get together and discuss things like this? FB page?
I agree with Leslie! We should file a complaint because how can a 2x bull ETF fall more than 50% when underlying oil price has increased by more than 100% over the same period.
This ETF is certainly a scam!!
I just spoke with Harry at IIROC and Juliet at Ontario Securities Commission.
Please send your formal complaints to InvestorInquiries@iiroc.ca and Inquiries@OSC.Gov.on.ca
Thanks,
What should be included in the complaint?
Can join the petition after taking my loss
What a piece of garbage etf… It’s less than two months since their last consolidation of 1 for 10….just a way to artificially raise the price again so that it can be tanked even further. Horizon ETFs are poorly managed in general.
It is a garbage
This consolidation is not necessary. Just leave it. The increase is not the same in terms of the original price on a relative basis. Just don’t disturb the equilibrium. Don’t show me any reasons. Relatively speaking we don’t stand to gain.