NEW YORK,, Nov. 26, 2021 /PRNewswire/ - Bank of Montreal (TSX: BMO) (NYSE: BMO) announced
today that it will implement a 1-for-20 reverse split of its
outstanding MicroSectors™ FANG+™ Index -3X Inverse Leveraged ETNs
due January 8, 2038 (the "ETNs"),
expected to be effective as of December 6,
2021.
The table below indicates the ETNs that will be subject to the
reverse split, their trading symbol, their current CUSIP number,
and the CUSIP number that they will receive after giving effect to
the reverse split:
ETNs
|
|
Ticker
Symbol
|
|
Current CUSIP
/ New
CUSIP
|
MicroSectors™ FANG+™
Index -3X Inverse Leveraged
ETNs due January 8, 2038
|
|
FNGD
|
|
063679666 /
06367V204
|
The reverse split will be effective at the open of trading on
December 6, 2021. Each ETN will begin
trading on the NYSE Arca on a reverse split-adjusted basis on that
date. Holders of an ETN who purchased that ETN prior to
December 6, 2021 will receive one
reverse split-adjusted ETN for every 20 pre-reverse split ETNs.
In addition, investors that hold a number of ETNs that are not
evenly divisible by 20 will receive a cash payment for any
fractional ETNs remaining (the "partials"). The cash amount due on
any partials will be determined on December
13, 2021 and will equal, for each remaining ETN, its closing
indicative value on that date. Bank of Montreal will pay these amounts on or about
December 16, 2021.
The closing indicative value of each ETN on December 3, 2021 will be multiplied by 20 to
determine the reverse split-adjusted closing indicative value.
Following the reverse split, the ETNs will have a new CUSIP, as set
forth above, but will continue to trade under their current ticker
symbol.
The reverse split will affect the trading denominations of the
ETNs, but it will not have any effect on 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 the 1-for-20 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 (currently, $500) or the
trading price of that ETN.
|
|
Number of
ETNs
|
|
Hypothetical
Closing Indicative
Value
|
|
Aggregate
Closing
Indicative Value
|
|
|
|
|
|
|
|
Pre-Reverse
Split
|
|
100,000
|
|
$10.00
|
|
$1,000,000
|
|
|
|
|
|
|
|
1-for-20 Post-Reverse
Split
|
|
5,000
|
|
$200.00
|
|
$1,000,000
|
None of the other exchange traded notes issued by Bank of
Montreal are affected by this
announcement.
The ETNs are senior, unsecured obligations of Bank of
Montreal.
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 press 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.
Bank of Montreal, the issuer of
the ETNs, has filed a registration statement (including a pricing
supplement, prospectus supplement and prospectus) with the SEC
regarding the ETNs discussed in this press release. Please read
those documents and the other documents relating to the ETNs that
Bank of Montreal has filed with
the SEC for more complete information about Bank of Montreal and the ETNs. These documents may be
obtained without cost by visiting EDGAR on the SEC website at
www.sec.gov. Alternatively, Bank of Montreal, and any agent or dealer that
participated in the offerings of the ETNs, will arrange to send the
applicable pricing supplement, the prospectus supplement and the
prospectus if so requested by calling toll-free at
1-877-369-5412.
About REX Shares
Founded in 2015, REX Shares ("REX") is an independent provider
of exchange traded products based in Fairfield, Connecticut. As ETP architects, the
REX team creates investment vehicles that solve for a range of
specific challenges in investor portfolios. The firm is rooted in
decades of structuring and building inventive exchange-traded
product solutions.
For more information, please visit www.microsectors.com
Follow REX on Twitter @msectors
REX Media Contacts: media@rexshares.com
About BMO Financial Group
Serving customers for 200 years and counting, BMO is a highly
diversified financial services provider - the 8th largest bank, by
assets, in North America. With
total assets of $971 billion as of
July 31, 2021, and a team of diverse
and highly engaged employees, BMO provides a broad range of
personal and commercial banking, wealth management and investment
banking products and services to more than 12 million customers and
conducts business through three operating groups: Personal and
Commercial Banking, BMO Wealth Management and BMO Capital
Markets.
BMO Media Contact: Kelly Hechler,
Kelly.Hechler@bmo.com, (416) 867-3996
Bank of Montreal ETNs: US.ETN@bmo.com,
+1-877-369-5412
Internet: www.bmo.com
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SOURCE BMO Financial Group