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Direxion to execute reverse share splits of two ETFs

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Direxion, a provider of alternative investment strategies, will execute a one-for-five reverse split of the shares of the Direxion Daily Financial Bull 3x Shares and a one-for-ten rever

Direxion, a provider of alternative investment strategies, will execute a one-for-five reverse split of the shares of the Direxion Daily Financial Bull 3x Shares and a one-for-ten reverse split of the shares of the Direxion Daily Financial Bear 3x Shares after the closing of the markets on 8 July.

The shares will begin trading on NYSE Arca on a split-adjusted basis on 9 July.

As a result of the bull shares reverse split, every five shares will be exchanged for one share. Accordingly, the number of shares will decrease by approximately 80 per cent, and the net asset value and price of each share at the opening of the markets on 9 July will increase five-fold.

As a result of the bear shares reverse split, every ten shares will be exchanged for one share. Accordingly, the number of FAZ shares will decrease by approximately 90 per cent, and the net asset value and price of each share at the opening of the markets on 9 July will increase ten-fold.

A shareholder of either share could potentially hold a fractional share. However, fractional shares cannot trade on NYSE Arca and so Direxion will redeem for cash a shareholder’s fractional shares at the funds’ respective split-adjusted NAVs as of 8 July. Such redemptions could cause a shareholder to realise a gain or loss in connection with the redemption of the shareholder’s fractional share.

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