Direxion is to execute reverse share splits for four of its leveraged exchange-traded funds (ETFs), as well as forward share splits for another five leveraged ETFs.
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 one-for-four reverse split of the Direxion Daily Natural Gas Related Bear 3X Shares. The firm will also execute a one-for-five reverse split of the Direxion Daily S&P Oil & Gas Exp. & Prod. Bear 3X Shares, Direxion Daily Gold Miners Index Bear 3X Shares and Direxion Daily Junior Gold Miners Index Bear 3X Shares. The splits are effective at the open of the market on 25 August 2016.
As a result of this reverse split, every four or five shares of a fund will be exchanged for one share as indicated in the table above. Accordingly, the total number of the issued and outstanding shares for the funds will decrease. In addition, the per share net asset value (NAV) and next day’s opening market price will be approximately four or five times higher for the funds. Shares of the funds will begin trading on the NYSE Arca on a split-adjusted basis on 25 August.
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 split.
Additionally, Direxion will execute forward splits of the Direxion Daily Brazil Bull 3X Shares, Direxion Daily Real Estate Bull 3X Shares and Direxion Daily 20+ Treasury Bull 3X Shares (all 4-1), Direxion Daily Gold Miners Index Bull 3X Shares (5-1), and the Direxion Daily Junior Gold Miners Index Bull 3X Shares (10-1) on 24 August 2016.
As a result of these share splits, shareholders of each fund will receive an additional four, five or 10 shares for each share held of the applicable fund.
All share splits will apply to shareholders of record as of the close of NYSE Arca on 23 August, payable after the close of the NYSE Arca on the payable date. Shares of the funds will begin trading on the NYSE Arca on a split-adjusted basis on 25 August 2016.
