Viridi Funds Announces ETF Liquidation, De-listing

Rhea-AI Summary

The Board of Trustees of EA Series Trust has approved the liquidation of the Viridi Bitcoin Miners ETF (RIGZ) following a recommendation from Empowered Funds. This decision was influenced by a challenging macroeconomic environment affecting the ETF's performance. RIGZ will cease trading on January 4, 2023, and there will be no purchase orders accepted after this date. Shareholders may sell their holdings prior to this date, but liquidity may be limited during the liquidation period until January 11, 2023. Cash distributions will be made to shareholders based on the net asset value of their shares.

Positive

• Shareholders will receive a cash distribution equal to the net asset value of their shares upon liquidation.

Negative

• Liquidation of RIGZ indicates significant challenges faced by the ETF in the current macroeconomic climate.
• Trading will cease, limiting opportunities for investors to liquidate holdings prior to the fund's closure.

PHILADELPHIA, Dec. 20, 2022 /PRNewswire/ -- Upon the recommendation of Empowered Funds, LLC, dba EA Advisers, the Board of Trustees (the "Board") of EA Series Trust (the "Trust") approved a proposal to liquidate the Viridi Bitcoin Miners ETF ("RIGZ" or the "Fund"), a series of the Trust. After careful consideration of a number of factors, including the negative macroeconomic climate that has significantly affected the underlying constituents and the ability to deliver on the ETF mandate, the Board concluded that it is advisable and in the best interest of the Fund and its shareholders to liquidate the Fund. Any shareholders still holding shares of the fund at liquidation will receive a cash distribution equal to the net asset value (NAV) of their shares.

RIGZ will cease trading on the NYSE Arca, Inc. ("NYSE") and will be closed to purchase by investors as of the close of regular trading on January 4, 2023 (the "Closing Date"). The Fund will not accept purchase orders after the Closing Date.

Shareholders may sell their holdings in the Fund prior to the Closing Date and customary brokerage charges will apply to these transactions. However, from January 4, 2023 through January 11, 2023 (the "Liquidation Date"), shareholders may be able to sell their shares only to certain broker-dealers and there is no assurance that there will be a market for the Fund's shares during this time period. Between the Closing Date and the Liquidation Date, the Fund will be in the process of closing down and liquidating the Fund's portfolio. This process will result in the Fund increasing its cash holdings, which is inconsistent with the Fund's investment objective and strategy.

On or about the Liquidation Date, the Fund will liquidate its assets and distribute cash pro rata to all shareholders of record who have not previously redeemed or sold their shares, subject to any required withholding. Liquidation proceeds paid to shareholders generally should be treated as received in exchange for shares and will therefore be treated as a taxable event giving rise to a capital gain or loss depending on a shareholder's tax basis. Shareholders should contact their tax adviser to discuss the income tax consequences of the liquidation. In addition, these payments to shareholders may include distributions of accrued capital gains and dividends. As calculated on the Liquidation Date, the Fund's net asset value will reflect the costs of closing the Fund. Once the distributions are complete, the Fund will terminate.

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Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Fund, please call 1.215.882.9983 or visit our website at https://viridifunds.com. Read the prospectus or summary prospectus carefully before investing.

The Fund is distributed by Quasar Distributors, LLC.

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SOURCE ETF Architect

FAQ

What is the reason for the liquidation of the Viridi Bitcoin Miners ETF (RIGZ)?

The Board concluded that liquidation was necessary due to a negative macroeconomic climate impacting the ETF's ability to meet its mandate.

When will the Viridi Bitcoin Miners ETF (RIGZ) stop trading?

RIGZ will cease trading on January 4, 2023.

What will happen to shareholders of RIGZ during the liquidation process?

Shareholders will receive cash distributions equal to the net asset value of their shares after the liquidation is complete.

Is there a deadline for selling shares of RIGZ before liquidation?

Yes, shareholders can sell their holdings before the close of trading on January 4, 2023.

What tax implications should shareholders of RIGZ consider?

Liquidation proceeds will generally be treated as a taxable event, potentially resulting in capital gains or losses depending on the shareholder's tax basis.