Direxion Investments is to execute reverse share splits for two of its leveraged exchange-traded funds (ETFs) – the Direxion Daily Junior Gold Miners Bull 3X Shares (JNUG) and Direxion Daily Russia Bull 3X Shares (RUSL).
The total market value of the shares outstanding will not be affected as a result of these splits, except with respect to the redemption of fractional shares.
Direxion will execute a 1-for-10 reverse split of the shares of JNUG, effective at the opening of the markets on Tuesday, 23 December, 2014. The firm will also execute 1-for-6 reverse splits of the shares of RUSL, also effective at the opening of the markets on 23 December, 2014.
As a result of this reverse split, every ten or six shares of a Fund will be exchanged for one share. In addition, the per-share net asset value (NAV) and next day’s opening market price will be approximately ten or six times higher for the Funds. Shares of the Funds will begin trading on NYSE Arca, Inc. (“NYSE Arca”) on a split-adjusted basis on 23 December, 2014.
The next day’s opening market value of the Funds’ issued and outstanding shares, and thus a shareholder’s investment value, will not be affected by the reverse splits.
