Direxion Announces Reverse and Forward Share Splits of Fifteen ETFs
Benzinga 9 years ago
ETFs
Eight Reverse Splits
Direxion will execute reverse splits of the Direxion Daily S&P 500® Bear 1X Shares, Direxion Daily Gold Miners Index Bull 3X Shares, Direxion Daily Junior Gold Miners Index Bull 3X Shares, Direxion Daily Junior Gold Miners Index Bear 3X Shares, Direxion Daily Semiconductor Bear 3X Shares, Direxion Daily Regional Banks Bear 3X Shares, Direxion Daily Russia Bear 3X Shares, and Direxion Daily S&P 500® Bear 3X Share. The splits are effective at the open of the market on May 1, 2017.
A summary of the eight ETFs undergoing reverse splits is as follows (please note the CUSIP changes, effective May 1, 2017):
Fund NameTickerCurrent
CUSIPNew CUSIPReverse Split
RatioApproximate
decrease in total
number of
outstanding shares
Direxion Daily S&P 500® Bear
1X SharesSPDN25490K21625460E8691 for 250%
Direxion Daily Gold Miners
Index Bull 3X SharesNUGT25490K57025460E8441 for 475%
Direxion Daily Junior Gold
Miners Index Bull 3X SharesJNUG25490K55425460E8511 for 475%
Direxion Daily Junior Gold
Miners Index Bear 3X SharesJDST25490K14125460E8771 for 475%
Direxion Daily Semiconductor
Bear 3X SharesSOXS25490K77825460E8361 for 580%
Direxion Daily Regional Banks
Bear 3X SharesWDRW25459Y12425460E8021 for 580%
Direxion Daily Russia Bear 3X
SharesRUSS25490K78625460E8281 for 580%
Direxion Daily S&P 500® Bear
3X SharesSPXS25459Y37125460E8851 for 580%
As a result of this reverse split, every two, 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 by the approximate percentage indicated above. In addition, the per share net asset value ("NAV") and next day's opening market price will be approximately two-, four- or five-times higher for the Funds. Shares of the Funds will begin trading on the NYSE Arca, Inc. (the "NYSE Arca") on a split-adjusted basis on May 1, 2017.
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-two, one-for-four or one-for-five reverse split anticipated for the Funds, as applicable and described above:
1-for-2 Reverse Split
Period# of Shares OwnedHypothetical NAVTotal Market Value
Pre-Split120$10$1,200
Post-Split60$20$1,200
1-for-4 Reverse Split
Period# of Shares OwnedHypothetical NAVTotal Market Value
Pre-Split120$10$1,200
Post-Split30$40$1,200
1-for-5 Reverse Split
Period# of Shares OwnedHypothetical NAVTotal Market Value
Pre-Split120$10$1,200
Post-Split24$50$1,200
Seven Forward Splits
Additionally, Direxion will execute forward splits of the Direxion Daily S&P 500® Bull 3X Shares, Direxion Daily Latin America Bull 3X Shares, Direxion Daily Small Cap Bull 3X Shares, Direxion Daily Russia Bull 3X Shares, Direxion Daily S&P Oil & Gas Exp. & Prod. Bull 3X Shares, Direxion All Cap Insider Sentiment Shares, Direxion NASDAQ-100 Equal Weighted Index Shares.
A summary of the seven ETFs undergoing forward splits is as follows:
Fund NameTickerForward Split
RatioApproximate increase in
total number of
outstanding shares
Direxion Daily S&P 500® Bull 3X SharesSPXL4 for 1300%
Direxion Daily Latin America Bull 3X SharesLBJ4 for 1300%
Direxion Daily Small Cap Bull 3X SharesTNA2 for 1100%
Direxion Daily Russia Bull 3X SharesRUSL2 for 1100%
Direxion Daily S&P Oil & Gas Exp. & Prod.
Bull 3X SharesGUSH2 for 1100%
Direxion All Cap Insider Sentiment SharesKNOW2 for 1100%
Direxion NASDAQ-100 Equal Weighted Index
SharesQQQE2 for 1100%
As a result of these share splits, shareholders of each Fund will receive two or four shares for each share held of the applicable Fund as indicated in the table above. Accordingly, the number of each Fund's issued and outstanding shares will increase by the approximate percentage indicated above.
All share splits will apply to shareholders of record as of the close of NYSE Arca, Inc. (the "NYSE Arca") on April 27, 2017 (the "Record Date"), payable after the close of the NYSE Arca on the payable date, April 28, 2017. Shares of the Funds will begin trading on the NYSE Arca on a split-adjusted basis on May 1, 2017 (the "Ex-Date"). On the Ex-Date, the opening market value of each Fund's issued and outstanding shares, and thus a shareholder's investment value, will not be affected by the share split. However, the per share net asset value ("NAV") and opening market price on the Ex-Date will be approximately one-half or one-fourth for the Funds. The tables below illustrate the effect of a hypothetical two-for-one and four-for-one split on a shareholder's investment.
2-for-1 Share Split
Period# of Shares OwnedHypothetical NAVTotal Market Value
Pre-Split100$20$2,000
Post-Split200$10$2,000
4-for-1 Share Split
Period# of Shares OwnedHypothetical NAVTotal Market Value
Pre-Split100$40$4,000
Post-Split400$10$4,000
Direxion will execute reverse splits of the Direxion Daily S&P 500® Bear 1X Shares, Direxion Daily Gold Miners Index Bull 3X Shares, Direxion Daily Junior Gold Miners Index Bull 3X Shares, Direxion Daily Junior Gold Miners Index Bear 3X Shares, Direxion Daily Semiconductor Bear 3X Shares, Direxion Daily Regional Banks Bear 3X Shares, Direxion Daily Russia Bear 3X Shares, and Direxion Daily S&P 500® Bear 3X Share. The splits are effective at the open of the market on May 1, 2017.
A summary of the eight ETFs undergoing reverse splits is as follows (please note the CUSIP changes, effective May 1, 2017):
Fund NameTickerCurrent
CUSIPNew CUSIPReverse Split
RatioApproximate
decrease in total
number of
outstanding shares
Direxion Daily S&P 500® Bear
1X SharesSPDN25490K21625460E8691 for 250%
Direxion Daily Gold Miners
Index Bull 3X SharesNUGT25490K57025460E8441 for 475%
Direxion Daily Junior Gold
Miners Index Bull 3X SharesJNUG25490K55425460E8511 for 475%
Direxion Daily Junior Gold
Miners Index Bear 3X SharesJDST25490K14125460E8771 for 475%
Direxion Daily Semiconductor
Bear 3X SharesSOXS25490K77825460E8361 for 580%
Direxion Daily Regional Banks
Bear 3X SharesWDRW25459Y12425460E8021 for 580%
Direxion Daily Russia Bear 3X
SharesRUSS25490K78625460E8281 for 580%
Direxion Daily S&P 500® Bear
3X SharesSPXS25459Y37125460E8851 for 580%
As a result of this reverse split, every two, 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 by the approximate percentage indicated above. In addition, the per share net asset value ("NAV") and next day's opening market price will be approximately two-, four- or five-times higher for the Funds. Shares of the Funds will begin trading on the NYSE Arca, Inc. (the "NYSE Arca") on a split-adjusted basis on May 1, 2017.
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-two, one-for-four or one-for-five reverse split anticipated for the Funds, as applicable and described above:
1-for-2 Reverse Split
Period# of Shares OwnedHypothetical NAVTotal Market Value
Pre-Split120$10$1,200
Post-Split60$20$1,200
1-for-4 Reverse Split
Period# of Shares OwnedHypothetical NAVTotal Market Value
Pre-Split120$10$1,200
Post-Split30$40$1,200
1-for-5 Reverse Split
Period# of Shares OwnedHypothetical NAVTotal Market Value
Pre-Split120$10$1,200
Post-Split24$50$1,200
Seven Forward Splits
Additionally, Direxion will execute forward splits of the Direxion Daily S&P 500® Bull 3X Shares, Direxion Daily Latin America Bull 3X Shares, Direxion Daily Small Cap Bull 3X Shares, Direxion Daily Russia Bull 3X Shares, Direxion Daily S&P Oil & Gas Exp. & Prod. Bull 3X Shares, Direxion All Cap Insider Sentiment Shares, Direxion NASDAQ-100 Equal Weighted Index Shares.
A summary of the seven ETFs undergoing forward splits is as follows:
Fund NameTickerForward Split
RatioApproximate increase in
total number of
outstanding shares
Direxion Daily S&P 500® Bull 3X SharesSPXL4 for 1300%
Direxion Daily Latin America Bull 3X SharesLBJ4 for 1300%
Direxion Daily Small Cap Bull 3X SharesTNA2 for 1100%
Direxion Daily Russia Bull 3X SharesRUSL2 for 1100%
Direxion Daily S&P Oil & Gas Exp. & Prod.
Bull 3X SharesGUSH2 for 1100%
Direxion All Cap Insider Sentiment SharesKNOW2 for 1100%
Direxion NASDAQ-100 Equal Weighted Index
SharesQQQE2 for 1100%
As a result of these share splits, shareholders of each Fund will receive two or four shares for each share held of the applicable Fund as indicated in the table above. Accordingly, the number of each Fund's issued and outstanding shares will increase by the approximate percentage indicated above.
All share splits will apply to shareholders of record as of the close of NYSE Arca, Inc. (the "NYSE Arca") on April 27, 2017 (the "Record Date"), payable after the close of the NYSE Arca on the payable date, April 28, 2017. Shares of the Funds will begin trading on the NYSE Arca on a split-adjusted basis on May 1, 2017 (the "Ex-Date"). On the Ex-Date, the opening market value of each Fund's issued and outstanding shares, and thus a shareholder's investment value, will not be affected by the share split. However, the per share net asset value ("NAV") and opening market price on the Ex-Date will be approximately one-half or one-fourth for the Funds. The tables below illustrate the effect of a hypothetical two-for-one and four-for-one split on a shareholder's investment.
2-for-1 Share Split
Period# of Shares OwnedHypothetical NAVTotal Market Value
Pre-Split100$20$2,000
Post-Split200$10$2,000
4-for-1 Share Split
Period# of Shares OwnedHypothetical NAVTotal Market Value
Pre-Split100$40$4,000
Post-Split400$10$4,000