Closure Due to Inability to Attract Sufficient Investment Assets
02 Juni 2023 - 10:09PM
The Board of Trustees of the Tidal ETF Trust has decided to
liquidate and close
The Constrained
Capital ESG Orphans ETF (ORFN) (the “Fund”), based
on the recommendation of the Fund’s investment adviser, Toroso
Investments LLC. As a result, the Board concluded that liquidating
and closing the Fund would be in the best interest of the Fund and
its shareholders.
The Fund will cease trading on the NYSE Arca,
Inc. (“NYSE”) and will be closed to purchase by investors as of the
close of regular trading on the NYSE on June 26, 2023 (the “Closing
Date”). The Fund will not accept purchase orders after the Closing
Date.
Shareholders may sell their holdings in the Fund
prior to the Closing Date and customary brokerage charges may apply
to these transactions. However, from June 26, 2023 through June 30,
2023 (the “Liquidation Date”), shareholders may be able to sell
their shares only to certain broker-dealers and there is no
assurance that there will be a market for the Fund’s shares during
this time period. Between the Closing Date and the Liquidation
Date, the Fund will be in the process of closing down and
liquidating the Fund’s portfolio. This process will result in the
Fund increasing its cash holdings and, as a consequence, not
tracking its underlying index, which is inconsistent with the
Fund’s investment objective and strategy.
On or about the Liquidation Date, the Fund will
liquidate its assets and distribute cash pro rata to all
shareholders of record who have not previously redeemed or sold
their shares, subject to any required withholding. Liquidation
proceeds paid to shareholders generally should be treated as
received in exchange for shares and will therefore be treated as a
taxable event giving rise to a capital gain or loss depending on a
shareholder’s tax basis. Shareholders should contact their tax
adviser to discuss the income tax consequences of the liquidation.
In addition, these payments to shareholders may include
distributions of accrued capital gains and dividends. As calculated
on the Liquidation Date, the Fund’s net asset value will reflect
the costs of closing the Fund. Once the distributions are complete,
the Fund will terminate.
About Tidal Financial Group
Formed by ETF industry pioneers and thought
leaders, Tidal Financial Group sets out to revolutionize the way
ETFs have historically been developed, launched, marketed, and
sold. With a focus on growing AUM, Tidal offers a comprehensive
suite of services, proprietary tools, and methodologies designed to
bring lasting ideas to market. Tidal is an advocate for ETF
innovation. The firm is on a mission to provide issuers with the
intelligence and tools needed to efficiently and to effectively
launch ETFs and to optimize growth potential in a highly
competitive space. For more information, visit
https://www.tidalfinancialgroup.com/.
MEDIA CONTACT
Eric Falkeis
ericf@tidalfg.com
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