Market Vectors ETF Trust’s board of trustees has approved reverse share splits of seven ETFs.
The effective date of the split will be at market open on 1 July 2013. The funds will continue to trade on the NYSE Arca under their current ticker symbols, but their current CUSIP numbers will be discontinued and the funds’ new CUSIP numbers will be as follows, effective 1 July 2013.
Market Vectors Global Alternative Energy ETF (GEX) – 1-for-3
Market Vectors Russia Small-Cap ETF (RSXJ) – 1-for-3
Market Vectors Uranium+Nuclear Energy ETF (NLR) – 1-for-3
Market Vectors Egypt Index ETF (EGPT) – 1-for-4
Market Vectors India Small-Cap Index ETF (SCIF) – 1-for-4
Market Vectors Junior Gold Miners ETF (GDXJ) – 1-for-4
Market Vectors Rare Earth/Strategic Metals ETF (REMX) – 1-for-4
The Depository Trust Company, the registered owner of all fund shares, has been notified of the reverse share splits and has been instructed to adjust each shareholder’s investment accordingly.
Shares of the fund will be offered on a split-adjusted basis on 1 July 2013. The total market value of the shares outstanding will not be affected as a result of this reverse share split, except with respect to the redemption of fractional shares, as discussed below.
For shareholders who hold quantities of shares that are not exact multiples of the reverse share split ratios (for example: a multiple of three for a 1-for-3 split), the reverse share splits will result in the creation of fractional shares. Post-split fractional shares will be redeemed for cash and sent to the broker of record. This redemption may cause some shareholders to realise gains or losses, which could be a taxable event for those shareholders. Otherwise, the reverse split will not result in a taxable transaction for holders of the fund.