NEW
YORK, Nov. 21, 2022 /PRNewswire/ - Bank of
Montreal (TSX:BMO)(NYSE:BMO) today
announced that it will implement a reverse split of the ETNs listed
in the table below, expected to be effective as of December 2, 2022.
The table below indicates the ETNs that will be subject to the
reverse split, their respective 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 U.S. Big Oil Index -3X
Inverse Leveraged ETNs due March 25, 2039
|
|
NRGD
|
1 for 10
|
06367V303 /
06368L106
|
MicroSectors™ Oil &
Gas Exploration & Production -3X Inverse Leveraged ETNs due
June 28, 2041
|
|
OILD
|
1 for 10
|
063679575 /
06368L205
|
The reverse splits will be effective at the open of trading on
December 2, 2022. 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 2, 2022 will receive one
reverse split-adjusted ETN for every 10 pre-reverse split ETNs.
In addition, investors that hold a number of ETNs that are not
evenly divisible by the applicable number will receive a cash
payment for any fractional ETNs remaining (the "partials"). The
cash amount due on any partials will be determined on December 12, 2022 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 15, 2022.
The closing indicative value of each ETN on December 1, 2022 will be multiplied by 10 to
determine the reverse split-adjusted closing indicative value.
Following the reverse split, each ETNs will have a new CUSIP, as
set forth above, but will continue to trade under their current
respective ticker symbols.
The reverse splits will affect the trading denominations of each
of the ETNs, but it 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."
Illustrations of a Reverse Split
The following table shows the effect of the 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
ETNs
|
|
Hypothetical
Closing Indicative
Value
|
|
Aggregate
Closing
Indicative Value
|
|
|
|
|
|
|
|
Pre-Reverse
Split
|
|
100,000
|
|
$10.00
|
|
$1,000,000
|
|
|
|
|
|
|
|
1-for-10 Post-Reverse
Split
|
|
10,000
|
|
$100.00
|
|
$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, product supplement (if applicable),
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 ETPs based in Miami, Florida. 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.rexshares.com or
www.microsectors.com.
Twitter: @REXShares and @MSectors
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 $1.07 trillion as of July 31, 2022, 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.
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SOURCE BMO Financial Group