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Direxion Shares to execute reverse share split of ETF

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Direxion will execute a one for two reverse split of the shares of Direxion Daily Mid Cap Bear 3x Shares after the closing of the markets on 24 June 2009.

Direxion will execute a one for two reverse split of the shares of Direxion Daily Mid Cap Bear 3x Shares after the closing of the markets on 24 June 2009.

MWN shares will begin trading on NYSE Arca on a split-adjusted basis on 25 June 2009.

As a result of the reverse split, every two shares of MWN will be exchanged for one share. Accordingly, the number of MWN shares will decrease by approximately 50 per cent, and the net asset value and price of each share at the opening of the markets on 25 June will double.

The total market value of the MWN shares outstanding will not be affected as a result of this reverse split except with respect to the redemption of fractional shares.

The Depository Trust Company, the registered owner of all MWN shares, has been notified of the reverse split and is instructed to adjust each shareholder’s investment accordingly.

As a result of the reverse split, a shareholder of MWN could potentially hold a fractional share. However, fractional shares cannot trade on NYSE Arca. Thus, MWN will redeem for cash a shareholder’s fractional shares at MWN’s split-adjusted NAV as of 24 June. Such redemptions could cause a shareholder to realise a gain or loss in connection with the redemption of the shareholder’s fractional share. Otherwise, the reverse split will not result in a taxable transaction for holders of MWN shares. No transaction fee will be imposed on shareholders for such redemption.

MWN will provide one authorized participant with a one-time opportunity to redeem the odd lot unit at the split-adjusted NAV or the NAV on such date the authorized participant seeks to redeem the odd lot unit.

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