NEW YORK, July 10, 2020 /PRNewswire/ - Bank of Montreal (TSX: BMO) (NYSE: BMO) today
announced that it will implement a 1-for-10 reverse split of its
MicroSectors™ FANG+™ Index -3X Inverse Leveraged ETNs (NYSE: FNGD)
(the "ETNs" or "Notes"), expected to be effective as of
July 20, 2020.
The reverse split will be effective at the open of trading on
July 20, 2020. FNGD will begin
trading on the NYSE Arca on a reverse split-adjusted basis on
July 20, 2020. Holders of FNGD who
purchased such ETNs prior to July 20,
2020 will receive one reverse split-adjusted ETN for every
ten pre-reverse split ETNs.
In addition, such purchasers that hold a number of ETNs not
evenly divisible by ten will receive a cash payment for any
fractional ETNs remaining (the "partials"). The cash amount due on
any partials will be determined on July 24,
2020 and will equal, for each remaining ETN, the closing
indicative value of FNGD on such date. Bank of Montreal will pay these amounts on or about
July 29, 2020.
The closing indicative value of FNGD on July 17, 2020 will be multiplied by ten to
determine the reverse split-adjusted closing indicative value.
Following the reverse split, FNGD will have a new CUSIP but will
retain its same ticker symbol.
The reverse split will affect the trading denominations of FNGD
but it will not have any effect on the stated principal amount of
the ETNs, except that the stated 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 a 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 the principal
amount (currently, $50) or the
trading price of that ETN.
|
|
Number of
ETNs
|
|
Hypothetical
Closing Indicative
Value
|
|
Aggregate
Closing
Indicative Value
|
Pre-Reverse
Split
|
|
100,000
|
|
$5.00
|
|
$500,000
|
|
|
|
|
|
|
|
1-for-10 Post-Reverse
Split
|
|
10,000
|
|
$50.00
|
|
$500,000
|
None of the other exchange traded notes issued by Bank of
Montreal are affected by this
announcement.
Reverse
Split
|
|
Ticker
Symbol
|
|
Current CUSIP
/
New
CUSIP
|
MicroSectors™ FANG+™
Index -3X Inverse
Leveraged ETNs due January 8, 2038
|
|
FNGD
|
|
063679 864
/
063679 666
|
The Notes are senior, unsecured obligations of Bank of
Montreal.
Investment suitability must be determined individually for each
investor, and the Notes 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.
Bank of Montreal, the issuer of
the Notes, has filed a registration statement (including a pricing
supplement, prospectus supplement and prospectus) with the SEC
regarding the offering of the Notes. Please read those documents
and the other documents relating to the Notes that Bank of
Montreal has filed with the SEC
for more complete information about Bank of Montreal and the Notes. 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 offering of the Notes, 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
REX Shares is an independent provider of
exchange-traded products (ETPs). As ETP architects, the REX team
specializes in creating investment vehicles that solve specific
access or efficiency challenges in investor portfolios. The firm is
rooted with decades of structuring and building innovative
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 $987 billion as
of April 30, 2020, 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.
MicroSectors™ and REX™ are registered trademarks of REX Shares,
LLC ("REX"). FANG+ is a registered trademark of ICE Data Indices,
LLC ("ICE Data"). The trademarks have been licensed for use for
certain purposes by Bank of Montreal. The NYSE® FANG+™ Index is
a product of ICE Data, and has been licensed for use by Bank of
Montreal. The ETNs are not
sponsored or sold by REX or any of its affiliates or third party
licensors (collectively, "REX Index Parties") or by ICE Data or any
of its affiliates or third party licensors (collectively, "ICE Data
Index Parties"). REX Index Parties and ICE Data Index Parties make
no representation or warranty, express or implied, to the owners of
the ETNs or any member of the public regarding the advisability of
investing in securities generally or in the ETNs particularly or
the ability of the NYSE® FANG+™ Index to track general
market performance. REX Index Parties and ICE Data Index Parties'
only relationship to Bank of Montreal with respect to the Index is the
licensing of the Index and certain trademarks, service marks and/or
trade names of REX Index Parties and ICE Data Index
Parties.
Internet: www.bmo.com
View original
content:http://www.prnewswire.com/news-releases/bank-of-montreal-announces-the-reverse-split-of-fngd-etns-301091738.html
SOURCE BMO Financial Group