BMO Announces Reverse Split of Two Series of ETNs
The table below indicates the ETNs that will be subject to the reverse split, their trading symbols, the applicable reverse split ratio, their current CUSIP numbers, and the CUSIP numbers that they will receive after giving effect to the reverse split:
ETNs |
|
Ticker Symbol |
|
Reverse Split Ratio |
|
Current CUSIP / New CUSIP |
MicroSectorsTM |
|
BNKD |
|
1-for-5 |
|
063679625 / 06367V501 |
MicroSectorsTM Gold Miners -3X Inverse Leveraged ETNs due |
|
GDXD |
|
1-for-10 |
|
063679641 / 06367V600 |
Each reverse split will be effective at the open of trading on
In addition, investors that hold a number of ETNs that are not evenly divisible by the number indicated above will receive a cash payment for any fractional ETNs remaining (the "partials"). The cash amount due on any partials will be determined on
The closing indicative value of each ETN on
The reverse splits will affect the trading denominations of the ETNs, but they will not affect the aggregate principal amount of the ETNs, except that the aggregate principal amount will be reduced by the corresponding aggregate amount of any cash payments for the "partials."
Illustration of a Reverse Split
The following table shows the effect of a hypothetical 1-for-10 reverse split on the hypothetical closing indicative value of the ETNs. The closing indicative value of an ETN is not the same as its principal amount or the trading price of that ETN.
|
|
Number of |
|
Hypothetical |
|
Aggregate Closing |
|
|
|
|
|
|
|
Pre-Reverse Split |
|
100,000 |
|
|
|
|
|
|
|
|
|
|
|
1-for-10 Post-Reverse Split |
|
10,000 |
|
|
|
|
None of the other exchange traded notes issued by
The ETNs are senior, unsecured debt obligations of
Investment suitability must be determined individually for each investor, and the ETNs may not be suitable for all investors. This information is not intended to provide and should not be relied upon as providing accounting, legal, regulatory or tax advice. Investors should consult with their own financial advisors as to these matters.
The leveraged ETNs discussed in this news release are intended to be daily trading tools for sophisticated investors to manage daily trading risks as part of an overall diversified portfolio. They are designed to achieve their stated investment objectives on a daily basis. The returns on the ETNs over longer periods of time can, and most likely will, differ significantly from the return on a direct short investment in the index underlying those ETNs. An investment in the ETNs is subject to significant risks. Investors should proceed with extreme caution in considering an investment in the ETNs.
REX is an innovative ETF provider that specializes in alternative-strategy ETFs and ETNs. The firm created the MicroSectors™ and co-created the T-REX product lines of leveraged and inverse tools for traders. The firm is rooted in decades of experience building inventive solutions that solve for a range of specific challenges in investor and trader portfolios.
For more information, please visit www.rexshares.com or http://www.microsectors.com.
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