Free Writing Prospectus - Filing Under Securities Act Rules 163/433 (fwp)
October 04 2022 - 6:09AM
Edgar (US Regulatory)
Filed Pursuant to Rule 433
Registration Statement No. 333-264388
Bank of Montreal
Market Linked Securities
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Market Linked Securities—Auto-Callable with Fixed Percentage
Buffered Downside
Principal at Risk Securities Linked to the Common Stock of Meta Platforms,
Inc. due October 22, 2024 |
Summary of Terms |
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Hypothetical Payout Profile*** |
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Issuer : |
Bank of Montreal |
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***assumes the call premiums are equal to the minimum of their call
premiums specified herein.
If the securities are not automatically called and
the ending price is less than the threshold price, you will have 1-to-1 downside exposure to the decrease in the price of the
Underlying Stock in excess of the buffer amount and will lose some, and possibly up to 85%, of the face amount of your securities at
maturity.
Any positive return on the securities will be limited
to the applicable call premium, even if the stock closing price of the Underlying Stock on the applicable call date significantly exceeds
the starting price. You will not participate in any appreciation of the Underlying Stock beyond the applicable call premium.
On the date of the accompanying preliminary pricing supplement, the estimated initial value of the securities is $946.50 per security.
The estimated initial value of the securities on the pricing date may differ from this value but will not be less than $906.50 per security.
However, as discussed in more detail in the accompanying preliminary pricing supplement, the actual value of the securities at any time
will reflect many factors and cannot be predicted with accuracy. See “Estimated Value of the Securities” in the accompanying
preliminary pricing supplement.
Preliminary Pricing Supplement:
https://www.sec.gov/Archives/edgar/data/927971/000121465922011791/r929220fwp.htm
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Market Measure: |
Common stock of Meta Platforms, Inc. (the “Underlying Stock”). |
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Pricing Date*: |
October 14, 2022. |
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Issue Date*: |
October 19, 2022. |
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Face Amount and
Original Offering
Price: |
$1,000 per security |
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Automatic Call
Feature: |
If the stock closing price of the Underlying Stock on any call date (including the final calculation day) is greater than or equal to the starting price, the securities will be automatically called for the face amount plus the call premium applicable to the relevant call date. |
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Call Dates* and Call
Premiums: |
Call Date |
Call Premium |
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October 19, 2023 |
At least 19.50% of the face amount |
April 19, 2024 |
At least 29.25% of the face amount |
October 15, 2024 |
At least 39.00% of the face amount |
Call Settlement
Date: |
Five business days after the applicable call date, subject to postponement; provided that the call settlement date for the last call date is the stated maturity date. |
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Maturity Payment
Amount (per
security): |
If the securities are not automatically called on any call date (including the final
calculation day):
• if the ending price is less than the starting price and greater than or equal
to the threshold price, $1,000; or
• if the ending price is less than the threshold price: $1,000 minus:
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Stated Maturity
Date*: |
October 22, 2024 |
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Starting Price: |
The stock closing price of the Underlying Stock on the pricing date |
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Ending Price: |
The stock closing price of the Underlying Stock on the final calculation day |
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Threshold Price: |
85% of the starting price |
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Calculation Agent: |
BMO Capital Markets Corp. (“BMOCM”), an affiliate of the issuer |
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Denominations: |
$1,000 and any integral multiple of $1,000 |
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Agent Discount**: |
Up to 2.325%; dealers, including those using the trade name Wells Fargo Advisors (“WFA”), may receive a selling concession of up to 1.50% and WFA may receive a distribution expense fee of 0.075% |
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CUSIP: |
06374VA63 |
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Material Tax Consequences: |
See the preliminary pricing supplement. |
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*subject to change
** In addition, selected dealers may receive a fee of up to 0.15% for marketing
and other services
The securities have complex features and investing in the securities involves
risks not associated with an investment in conventional debt securities. See “Selected Risk Considerations” in this term sheet
and the accompanying preliminary pricing supplement and “Risk Factors” in the accompanying product supplement.
This introductory term sheet does not provide
all of the information that an investor should consider prior to making an investment decision.
Investors should carefully review the accompanying preliminary
pricing supplement, product supplement, prospectus supplement and prospectus before making a decision to invest in the securities.
NOT A BANK DEPOSIT AND NOT INSURED OR GUARANTEED BY THE FDIC OR ANY OTHER GOVERNMENTAL
AGENCY
Selected Risk Considerations
The risks set forth below are discussed in detail in the “Selected Risk Considerations”
section in the accompanying preliminary pricing supplement and the “Risk Factors” section in the accompanying product supplement.
Please review those risk disclosures carefully.
Risks Relating to the Terms and Structure of the Securities
· If
The Securities Are Not Automatically Called And The Ending Price Is Less Than The Threshold Price, You Will Lose Some, And Possibly Up
To 85%, Of The Face Amount Of Your Securities At Stated Maturity.
· No
Periodic Interest Will Be Paid On The Securities.
· The
Potential Return On The Securities Is Limited To The Call Premium And May Be Lower Than The Return On A Direct Investment In The Underlying
Stock.
· Higher
Call Premiums Are Associated With Greater Risk.
· You
Will Be Subject To Reinvestment Risk
· The
Securities Are Subject To Credit Risk.
· Significant
Aspects Of The Tax Treatment Of The Securities Are Uncertain.
· A
Call Settlement Date And The Maturity Date May Be Postponed If A Call Date Is Postponed.
Risks Relating To The Estimated
Value Of The Securities And Any Secondary Market
· The
Estimated Value Of The Securities On The Pricing Date, Based On Our Proprietary Pricing Models, Will Be Less Than The Original Offering
Price.
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· The
Terms Of The Securities Are Not Determined By Reference To The 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 WFS Or Any Other Person May Be Willing To Buy The
Securities From You In The Secondary Market.
· The
Value Of The Securities Prior To Stated 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.
Risks Relating to the Underlying Stock
· The
Securities Will Be Subject To Single Stock Risk.
· Any
Payment Upon An Automatic Call Or At Stated Maturity Will Depend Upon The Performance Of The Underlying Stock And Therefore The Securities
Are Subject To A Variety Of Risks, Each As Discussed In More Detail In The Accompanying Product Supplement.
Risks Relating to Conflicts of Interest
· Our
Economic Interests And Those Of Any Dealer Participating In The Offering Are Potentially Adverse To Your Interests. |
The Issuer has filed a registration statement (including a prospectus) with the SEC
for the offering to which this document relates. Before you invest, you should read the prospectus in that registration statement and
the other documents that the Issuer has filed with the SEC for more complete information about us and this offering. You may obtain these
documents free of charge by visiting the SEC’s website at http://www.sec.gov. Alternatively, the Issuer will arrange to send to
you the prospectus (as supplemented by the prospectus supplement) if you request it by calling the Issuer’s agent toll-free at 1-877-369-5412.
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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