Global X ETFs Announces ETF Reverse Stock Split of POTX

Rhea-AI Summary

Global X ETFs announced a reverse split for the Global X Cannabis ETF (POTX), effective after market close on June 10, 2022. The split will be at a ratio of 1:6, meaning that every six shares will convert into one share priced six times higher than the net asset value (NAV) prior to the split. Shareholders may receive cash for any fractional shares resulting from the split, which could trigger a taxable event. Global X continues to manage over $40 billion in assets across more than 90 ETFs.

Positive

• Reverse split aims to increase share price of POTX, potentially enhancing market perception.
• Global X manages over $40 billion in assets, indicating strong market presence.

Negative

• The reverse split may lead to fractional shares being redeemed for cash, which can create a taxable event for shareholders.

NEW YORK, May 20, 2022 /PRNewswire/ -- Global X ETFs, the New York-based provider of exchange-traded funds (ETFs), today announced a reverse split of the Global X Cannabis ETF (POTX) ("the Fund").

Effective after market close on June 10, 2022, the Fund will affect a reverse split at a ratio of 1:6. The reverse split will increase the price per share of the Fund with a proportionate decrease in the number of shares outstanding. For example, every six pre-split shares will result in receipt of one post-split share, which will be priced six times higher than the net asset value (NAV) of a pre-split share.

Illustration of Reverse Split

The following table shows the effect of a hypothetical 1:6 reverse split:

	Period # of Shares Owned	Hypothetical NAV	Value of Shares
Pre-Split	600	$10	$6,000
Post-Split	100	$60	$6,000

 

Fractional Shares

As a result of the reverse split, a shareholder of the Fund's shares could potentially hold fractional shares. In this case, a Fund will redeem the cash value (at NAV) of any fractional shares resulting from the reverse split. Receipt of cash in lieu of fractional shares may result in a taxable event to shareholders, and each shareholder should consult with the shareholder's own tax advisers with respect to the appropriate treatment of the receipt of such cash payment.

About Global X ETFs

Global X ETFs was founded in 2008. For more than a decade, our mission has been empowering investors with unexplored and intelligent solutions. Our product lineup features over 90 ETF strategies and over $40 billion in assets under management.ⁱ While we are distinguished for our Thematic Growth, Income and International Access ETFs, we also offer Core, Commodity, and Alpha funds to suit a wide range of investment objectives. Explore our ETFs, research and insights, and more at www.globalxetfs.com.

Global X is a member of Mirae Asset Financial Group, a global leader in financial services, with more than $640 billion in assets under management worldwide.ⁱⁱ Mirae Asset has an extensive global ETF platform ranging across the US, Brazil, Canada, Colombia, Europe, Hong Kong, India, Japan, Korea, and Vietnam with over $80 billion in assets under management.ⁱⁱⁱ

Media Contact
Frank Taylor
Dukas Linden Public Relations 
frank@dlpr.com 
(646) 808-3647

Important Disclosures

This information is not intended to be individual or personalized investment or tax advice and should not be used for trading purposes. Please consult a financial advisor or tax professional for more information regarding your investment and/or tax situation.

Investing involves risk, including the possible loss of principal. Shares of ETFs are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns.

Carefully consider the Funds' investment objectives, risks, and charges and expenses before investing. This and other information can be found in the Fund's summary or full prospectuses, which are available at globalxetfs.com. Please read the prospectus carefully before investing.

Global X Management Company LLC serves as an advisor to Global X Funds. The Funds are distributed by SEI Investments Distribution Co. (SIDCO), which is not affiliated with Global X Management Company LLC or Mirae Asset Global Investments.

Information provided by Global X Management Company LLC (Global X ETFs or Global X).

ⁱSource: Global X, as of 4/04/22

ⁱⁱMirae Asset, as of December 2021

iiiMirae Asset, as of 4/04/22

View original content:https://www.prnewswire.com/news-releases/global-x-etfs-announces-etf-reverse-stock-split-of-potx-301552292.html

SOURCE Global X Management Company LLC

FAQ

What is the reverse split for Global X Cannabis ETF (POTX)?

Global X announced a reverse split for POTX at a ratio of 1:6, effective after market close on June 10, 2022.

How will the reverse split affect my shares in POTX?

After the reverse split, every six shares will convert into one share priced six times higher, but shareholders may receive cash for any resulting fractional shares.

What happens to fractional shares after the POTX reverse split?

Fractional shares resulting from the reverse split will be redeemed for cash at net asset value (NAV), potentially resulting in a taxable event.

What is the total assets under management for Global X ETFs?

Global X manages over $40 billion in assets across more than 90 ETF strategies.