How the Redemption Amount Is Calculated
The Redemption Amount will be determined as follows:
· If the Final Price is greater than the Initial Price, the Redemption Amount will be equal to the lesser of:
(i) $1,000 plus
(ii) the Capped Value
· If the Final Price is less than or equal to the Initial Price, but greater than or equal to the Threshold Price, the Redemption Amount will be equal to $1,000
· If the Final Price is less than the Threshold Price, the Redemption Amount will be equal to $1,000 minus
In such a case, you will lose up to 90% of your principal amount.
How the Final Price Is Calculated
The Final Price will be calculated based on the weighted returns of the Basket Components and will be equal to the product of (i) 100 and (ii) an amount equal to 1 plus the sum of: (A) 50% of the Component Return of the DIA, (B) 30% of the Component Return of the MDY, and (C) 20% of the Component Return of the IWM.
The Component Return of a Basket Component will be equal to:
Final Component Price Initial Component Price
Initial Component Price
where,
· the Initial Component Price is the Fund Closing Price of such Basket Component on the Pricing Date, as set forth below; and
· the Final Component Price will be the Fund Closing Price of such Basket Component on the Final Valuation Date.
The Initial Component Prices of the Basket Components are as follows: DIA ($254.29), MDY ($321.53) and IWM ($138.90).
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Selected Risk Considerations
The risks set forth below are discussed in detail in the Risk Factors section in the accompanying pricing supplement, underlying supplement, prospectus supplement and prospectus. Please review those risk disclosures carefully.
· If The Final Price Is Less Than The Threshold Price, You Will Receive At Maturity Less, And Up To 90% Less, Than The Principal Amount Of Your Securities.
· Your Return Will Be Limited By The Capped Value And May Be Less Than The Return On A Direct Investment In The Basket Components.
· No Periodic Interest Will Be Paid On The Securities.
· Changes In The Prices Of The Basket Components May Offset Each Other.
· The Securities Are Subject To The Credit Risk Of Canadian Imperial Bank of Commerce.
· Our Estimated Value Of The Securities Is Lower Than The Original Offering Price Of The Securities.
· Our Estimated Value Does Not Represent Future Values Of The Securities And May Differ From Others Estimates.
· Our Estimated Value Was Not Determined By Reference To Credit Spreads For Our Conventional Fixed-Rate Debt.
· The Estimated Value Of The Securities Is Not An Indication Of The Price, If Any, At Which Wells Fargo Securities Or Any Other Person May Be Willing To Buy The Securities From You In The Secondary Market.
· The Value Of The Securities Prior To Maturity Will Be Affected By Numerous Factors, Some Of Which Are Related In Complex Ways.
· The Securities Will Not Be Listed On Any Securities Exchange And We Do Not Expect A Trading Market For The Securities To Develop.
· The Securities Will Be Subject To Small-Capitalization Or Mid-Capitalization Companies Risk.
· Anti-dilution Adjustments Relating To The Shares Of The Basket Components Do Not Address Every Event That Could Affect Such Shares.
· The Performance Of A Basket Component May Not Correlate With The Performance Of Its Underlying Index As Well As The Net Asset Value Per Share Of Such Basket Component, Especially During Periods Of Market Volatility.
· The Stated Maturity Date May Be Postponed If The Final Valuation Date Is Postponed.
· We Or One Of Our Affiliates Will Be The Calculation Agent And, As A Result, Potential Conflicts Of Interest Could Arise.
· Our Economic Interests And Those Of Any Dealer Participating In The Offering Of Securities Will Potentially Be Adverse To Your Interests.
o Research reports by our affiliates or any participating dealer or its affiliates may be inconsistent with an investment in the securities and may adversely affect the prices of the Basket Components.
o Business activities of our affiliates or any participating dealer or its affiliates with the companies whose securities are included in the Basket Components may adversely affect the prices of the Basket Components.
o Hedging activities by our affiliates or any participating dealer or its affiliates may adversely affect the prices of the Basket Components.
o Trading activities by our affiliates or any participating dealer or its affiliates may adversely affect the prices of the Basket Components.
o A participating dealer or its affiliates may realize hedging profits projected by its proprietary pricing models in addition to any selling concession and/or any distribution expense fee, creating a further incentive for the participating dealer to sell the securities to you.
· The U.S. Federal Tax Consequences Of An Investment In The Securities Are Unclear.
· There Can Be No Assurance That The Canadian Federal Income Tax Consequences Of An Investment In The Securities Will Not Change In The Future.
Not suitable for all investors
Investment suitability must be determined individually for each investor. The securities described herein are not a suitable investment for all investors. In particular, no investor should purchase the securities unless they understand and are able to bear the associated market, liquidity and yield risks. Unless market conditions and other relevant factors change significantly in your favor, a sale of the securities prior to maturity is likely to result in sale proceeds that are substantially less than the principal amount of the securities. CIBC, Wells Fargo Securities and their respective affiliates are not obligated to purchase the securities from you at any time prior to maturity.
The Issuer has filed a registration statement (including a prospectus, a prospectus supplement and an underlying supplement) with the Securities and Exchange Commission (the SEC) for the offering to which this communication relates. Before you invest, you should read the prospectus, the prospectus supplement and the underlying supplement in that registration statement and other documents the Issuer has filed with the SEC for more complete information about the Issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, any agent or any dealer participating in the offering will arrange to send you the prospectus, the prospectus supplement and the underlying supplement if you request them by calling your financial advisor or by calling Wells Fargo Securities at 866-346-7732.
Consult your tax advisor
Investors should review carefully the accompanying pricing supplement, underlying supplement, prospectus supplement and prospectus and consult their tax advisors regarding the application of the U.S. federal income tax laws to their particular circumstances, as well as any tax consequences arising under the laws of any state, local or foreign jurisdiction.
Wells Fargo Advisors is a trade name used by Wells Fargo Clearing Services, LLC and Wells Fargo Advisors Financial Network, LLC, members SIPC, separate registered broker-dealers and non-bank affiliates of Wells Fargo & Company.
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