Roundhill Announces Reverse Split of WEED & MEME ETFs

Rhea-AI Summary

Roundhill Investments announced a reverse split for its Roundhill Cannabis ETF (WEED) and Roundhill MEME ETF (MEME) on April 28, 2023. The reverse split will be executed in a 1-for-5 ratio, meaning every five shares will convert into one. Despite the increase in per share value, the total market value of the funds will remain unchanged, with adjustments made for fractional shares. The new trading prices and adjusted shares will take effect on May 1, 2023.

Following the split, shareholders may receive cash for any held fractional shares, which may have tax implications. CUSIP changes for both ETFs will also occur, with the Roundhill Cannabis ETF and Roundhill MEME ETF changing to new identifiers on May 1, 2023.

Positive

• No change in total market value post-split
• Tax implications are clearly outlined for shareholders

Negative

• Potential tax implications for fractional share redemptions
• Reverse split may signal underlying stock issues

NEW YORK, April 14, 2023 /PRNewswire/ -- Roundhill Investments has announced it will execute a reverse split of the issued and outstanding shares of the Roundhill Cannabis ETF (Cboe BZX: WEED) and the Roundhill MEME ETF (NYSE Arca: MEME). The total market value of the shares outstanding will not be affected because of this split, except with respect to the redemption of fractional shares, as outlined below.

After the close of the markets on April 28, 2023, the Funds will affect a reverse split of their issued and outstanding shares as follows:

Fund Name	Reverse Split Ratio
Roundhill Cannabis ETF	1 for 5
Roundhill MEME ETF	1 for 5

Please note the CUSIP change, effective May 1, 2023:

Fund Name	Exchange	Current CUSIP	New CUSIP
Roundhill Cannabis ETF	Cboe BZX Exchange, Inc.	53656F367	53656F128
Roundhill MEME ETF	NYSE Arca, Inc.	53656F342	53656F136

As a result of the reverse split, every five shares of the Fund will be exchanged for one share as indicated in the table above. In addition, the per share net asset value ("NAV") and next day's opening market price will be approximately five times higher for the Funds. Shares of the Funds will begin trading on their respective exchanges on a split-adjusted basis on May 1, 2023.

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. The table below illustrates the effect of a hypothetical one-for-five reverse split anticipated for the Funds as described above:

1-for-5 Reverse Split

Period	# of Shares Owned	Hypothetical NAV	Total Market Value
Pre-Split	100	$10	$1,000
Post-Split	20	$50	$1,000

Redemption of Fractional Shares and Tax Consequences of the Reverse Split

As a result of the reverse split, a shareholder of the Funds' shares potentially could hold a fractional share. However, fractional shares cannot trade on the Funds' respective exchanges. Thus, the Fund will redeem for cash a shareholder's fractional shares at the Fund's split-adjusted NAV after the close of the markets on April 28, 2023. Such redemption may have tax implications for those shareholders and a shareholder could recognize a gain or loss in connection with the redemption of the shareholder's fractional shares. Otherwise, the reverse split will not result in a taxable transaction for holders of Fund shares. No transaction fee will be imposed on shareholders for such redemption.

"Odd Lot" Unit

Also as a result of the reverse split, the Funds may have outstanding one aggregation of less shares required to make a creation unit, or an "odd lot unit." Thus, the Funds will provide one authorized participant with a one-time opportunity to redeem the odd lot unit at the split adjusted NAV or the NAV on such date the authorized participant seeks to redeem the odd lot unit. An authorized participant is a capital market's facilitator of the ETF creation and redemption process.

The Listed Funds Trust's transfer agent will notify the Depository Trust Company ("DTC") of the reverse split and instruct DTC to adjust each shareholder's investment(s) accordingly. DTC is the registered owner of the Fund's shares and maintains a record of the Fund's record owners.

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 Roundhill ETFs please visit the website at https://www.roundhillinvestments.com/etf. Read the prospectus or summary prospectus carefully before investing.

Investing involves risk, including possible loss of principal. A commission may apply when buying or selling an ETF.

Roundhill Financial Inc serves as the investment advisor. The Funds are distributed by Foreside Fund Services, LLC which is not affiliated with Roundhill Financial Inc, U.S. Bank or any of their affiliates.

 

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SOURCE Roundhill Investments

FAQ

What is the reverse split ratio for WEED and MEME ETFs?

The reverse split ratio for both the Roundhill Cannabis ETF (WEED) and Roundhill MEME ETF (MEME) is 1-for-5.

When will the reverse split for WEED and MEME ETFs take effect?

The reverse split will take effect after the market close on April 28, 2023.

What are the new CUSIPs for WEED and MEME ETFs?

The new CUSIPs effective May 1, 2023 are 53656F128 for WEED and 53656F136 for MEME.

Will the reverse split affect the total market value of my investment in WEED or MEME?

No, the total market value of the funds will not change as a result of the reverse split.

What happens to fractional shares as a result of the reverse split?

Fractional shares will be redeemed for cash at the fund's split-adjusted NAV, which may have tax implications.