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BMO Announces Reverse Split of Two Series of ETNs

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Bank of Montreal (BMO) has announced a reverse split of two series of its outstanding exchange traded notes (ETNs), with the effective date set for April 29, 2024. The impacted ETNs include MicroSectorsTM U.S. Big Banks Index -3X Inverse Leveraged ETNs due March 25, 2039 (BNKD) and MicroSectorsTM Gold Miners -3X Inverse Leveraged ETNs due June 29, 2040 (GDXD). The reverse split ratios are 1-for-5 and 1-for-10 respectively. Holders of these ETNs will receive reverse split-adjusted ETNs for their existing holdings, with cash payments for any fractional ETNs remaining. Trading on the NYSE Arca will commence on a reverse split-adjusted basis on April 29, 2024.
La Banca di Montreal (BMO) ha annunciato uno scorporo inverso di due serie dei suoi titoli negoziabili in borsa (ETN) esistenti, con data di efficacia fissata per il 29 aprile 2024. Gli ETN interessati includono MicroSectorsTM U.S. Big Banks Index -3X Inverse Leveraged ETNs con scadenza il 25 marzo 2039 (BNKD) e MicroSectorsTM Gold Miners -3X Inverse Leveraged ETNs con scadenza il 29 giugno 2040 (GDXD). I rapporti di scorporo inverso sono rispettivamente di 1 per 5 e di 1 per 10. I detentori di questi ETN riceveranno ETN aggiustati post-scissione per i loro possedimenti esistenti, con pagamenti in contanti per eventuali ETN frazionati rimasti. Il trading sulla NYSE Arca inizierà su base aggiustata in seguito allo scorporo il 29 aprile 2024.
El Banco de Montreal (BMO) ha anunciado una división inversa de dos series de sus notas negociables en bolsa (ETNs) existentes, con la fecha efectiva establecida para el 29 de abril de 2024. Los ETNs afectados incluyen MicroSectorsTM U.S. Big Banks Index -3X Inverse Leveraged ETNs con vencimiento el 25 de marzo de 2039 (BNKD) y MicroSectorsTM Gold Miners -3X Inverse Leveraged ETNs con vencimiento el 29 de junio de 2040 (GDXD). Las proporciones de la división inversa son de 1 por 5 y de 1 por 10, respectivamente. Los tenedores de estos ETNs recibirán ETNs ajustados tras la división por sus tenencias existentes, con pagos en efectivo por cualquier fracción de ETNs que quede. La negociación en la NYSE Arca comenzará en una base ajustada tras la división el 29 de abril de 2024.
몬트리올 은행(BMO)은 2024년 4월 29일부로 두 시리즈의 기존 상장 교환 거래 증권(ETN)의 역분할을 발표했습니다. 영향을 받는 ETN은 MicroSectorsTM U.S. Big Banks Index -3X 인버스 레버리지 ETN(만기 2039년 3월 25일)(BNKD) 및 MicroSectorsTM Gold Miners -3X 인버스 레버리지 ETN(만기 2040년 6월 29일)(GDXD)입니다. 역분할 비율은 각각 1대 5, 1대 10입니다. 이 ETN 소유자는 기존 보유분에 대해 역분할 조정된 ETN을 받게 되며, 남은 분할 ETN에 대해서는 현금 지급이 이루어집니다. NYSE Arca에서의 거래는 2024년 4월 29일부터 역분할 조정 기준으로 시작됩니다.
La Banque de Montréal (BMO) a annoncé une division inversée de deux séries de ses billets négociables en bourse (ETN) existants, avec une date d'effet fixée au 29 avril 2024. Les ETN concernés incluent les MicroSectorsTM U.S. Big Banks Index -3X Inverse Leveraged ETN devant arriver à échéance le 25 mars 2039 (BNKD) et les MicroSectorsTM Gold Miners -3X Inverse Leveraged ETN devant arriver à échéance le 29 juin 2040 (GDXD). Les ratios de division inversée sont de 1 pour 5 et de 1 pour 10, respectivement. Les détenteurs de ces ETN recevront des ETN ajustés suite à la division pour leurs participations existantes, avec des paiements en espèces pour toutes portions fractionnées restantes. La négociation sur la NYSE Arca débutera sur une base ajustée suite à la division le 29 avril 2024.
Die Bank von Montreal (BMO) hat ein Reverse-Split zweier Serien ihrer bestehenden börsengehandelten Schuldverschreibungen (ETNs) angekündigt, das am 29. April 2024 wirksam wird. Die betroffenen ETNs umfassen die MicroSectorsTM U.S. Big Banks Index -3X Inverse Leveraged ETNs mit Fälligkeit am 25. März 2039 (BNKD) und MicroSectorsTM Gold Miners -3X Inverse Leveraged ETNs mit Fälligkeit am 29. Juni 2040 (GDXD). Die Verhältnisse des Reverse-Splits betragen jeweils 1-zu-5 und 1-zu-10. Inhaber dieser ETNs erhalten entsprechend angepasste ETNs für ihre bestehenden Anteile, mit Barauszahlungen für eventuelle verbleibende Bruchteile von ETNs. Der Handel auf der NYSE Arca wird am 29. April 2024 auf einer nach dem Reverse-Split angepassten Basis aufgenommen.
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NEW YORK, April 19, 2024 /PRNewswire/ - Bank of Montreal (TSX: BMO) (NYSE: BMO) today announced that it will implement a reverse split of two series of its outstanding exchange traded notes (the "ETNs" or "Notes"), as listed in the table below, expected to be effective as of April 29, 2024 (the "effective date").

The table below indicates the ETNs that will be subject to the reverse split, their trading symbols, the applicable reverse split ratio, their current CUSIP numbers, and the CUSIP numbers that they will receive after giving effect to the reverse split:

ETNs


Ticker Symbol


Reverse Split Ratio


Current CUSIP /

New CUSIP

MicroSectorsTM U.S. Big Banks Index -3X Inverse Leveraged ETNs due March 25, 2039


BNKD


1-for-5


063679625 / 06367V501

MicroSectorsTM Gold Miners -3X Inverse Leveraged ETNs due June 29, 2040


GDXD


1-for-10


063679641 / 06367V600

Each reverse split will be effective at the open of trading on April 29, 2024. Each ETN will begin trading on the NYSE Arca on a reverse split-adjusted basis on that date. Holders of an ETN who purchased that ETN prior to April 29, 2024 will receive one reverse split-adjusted ETN for the applicable number of ETNs in accordance with the applicable reverse split ratio indicated in the table above

In addition, investors that hold a number of ETNs that are not evenly divisible by the number indicated above will receive a cash payment for any fractional ETNs remaining (the "partials"). The cash amount due on any partials will be determined on May 2, 2024 and will equal, for each remaining ETN, its closing indicative value on that date. Bank of Montreal will pay these amounts on or about May 7, 2024.

The closing indicative value of each ETN on April 26, 2024 will be multiplied by the number indicated above to determine the applicable reverse split-adjusted closing indicative value. Following the reverse split, the ETNs will have a new CUSIP, as set forth above, but will continue to trade under their current ticker symbols.

The reverse splits will affect the trading denominations of the ETNs, but they will not affect the aggregate principal amount of the ETNs, except that the aggregate principal amount will be reduced by the corresponding aggregate amount of any cash payments for the "partials."

Illustration of a Reverse Split

The following table shows the effect of a hypothetical 1-for-10 reverse split on the hypothetical closing indicative value of the ETNs. The closing indicative value of an ETN is not the same as its principal amount or the trading price of that ETN.



Number of
ETNs


Hypothetical
Closing Indicative
Value


Aggregate Closing
Indicative Value








Pre-Reverse Split


100,000


$10.00


$1,000,000








1-for-10 Post-Reverse Split


10,000


$100.00


$1,000,000

None of the other exchange traded notes issued by Bank of Montreal are affected by this announcement.

The ETNs are senior, unsecured debt obligations of Bank of Montreal.

Investment suitability must be determined individually for each investor, and the ETNs may not be suitable for all investors. This information is not intended to provide and should not be relied upon as providing accounting, legal, regulatory or tax advice. Investors should consult with their own financial advisors as to these matters.

The leveraged ETNs discussed in this news release are intended to be daily trading tools for sophisticated investors to manage daily trading risks as part of an overall diversified portfolio. They are designed to achieve their stated investment objectives on a daily basis. The returns on the ETNs over longer periods of time can, and most likely will, differ significantly from the return on a direct short investment in the index underlying those ETNs. An investment in the ETNs is subject to significant risks. Investors should proceed with extreme caution in considering an investment in the ETNs.

Bank of Montreal, the issuer of the ETNs, has filed a registration statement (including a pricing supplement, prospectus supplement and prospectus) with the SEC regarding the ETNs discussed in this news release. These documents and the other documents relating to the ETNs that Bank of Montreal has filed with the SEC include more complete information about Bank of Montreal and the ETNs. These documents may be obtained without cost by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, Bank of Montreal, and any agent or dealer that participated in the offerings of the ETNs, will arrange to send the applicable pricing supplement, the prospectus supplement and the prospectus if so requested by calling toll-free at 1-877-369-5412.

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About BMO Financial Group

BMO Financial Group is the eighth largest bank in North America by assets, with total assets of $1.3 trillion as of January 31, 2024. Serving customers for 200 years and counting, BMO is a diverse team of highly engaged employees providing a broad range of personal and commercial banking, wealth management, global markets and investment banking products and services to 13 million customers across Canada, the United States, and in select markets globally. Driven by a single purpose, to Boldly Grow the Good in business and life, BMO is committed to driving positive change in the world, and making progress for a thriving economy, sustainable future, and inclusive society.

Cision View original content:https://www.prnewswire.com/news-releases/bmo-announces-reverse-split-of-two-series-of-etns-302122499.html

SOURCE BMO Financial Group

FAQ

What did Bank of Montreal (BMO) announce regarding its exchange traded notes (ETNs)?

Bank of Montreal announced a reverse split of two series of its outstanding exchange traded notes (ETNs).

When is the effective date for the reverse split of the ETNs?

The reverse split of the ETNs is expected to be effective as of April 29, 2024.

Which ETNs are subject to the reverse split?

The impacted ETNs include MicroSectorsTM U.S. Big Banks Index -3X Inverse Leveraged ETNs due March 25, 2039 (BNKD) and MicroSectorsTM Gold Miners -3X Inverse Leveraged ETNs due June 29, 2040 (GDXD).

What are the reverse split ratios for the affected ETNs?

The reverse split ratios are 1-for-5 for BNKD and 1-for-10 for GDXD.

When will the trading on the NYSE Arca commence for the reverse split-adjusted ETNs?

Trading on the NYSE Arca will begin on a reverse split-adjusted basis on April 29, 2024.

How will holders of the ETNs be compensated for any fractional ETNs remaining?

Holders of the ETNs will receive cash payments for any fractional ETNs remaining after the reverse split, determined based on the closing indicative value on May 2, 2024.

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