BMO Announces Upcoming Increase to the Financing Spread for its MicroSectors™ Gold Miners 3X Leveraged ETNs (NYSE Arca: GDXU)
Jan. 30, 2026 - Bank of Montreal ("BMO") today announced that pursuant to the terms of BMO's MicroSectors™ Gold Miners 3X Leveraged Exchange Traded Notes due June 29, 2040 (the "ETNs"), BMO Capital Markets Corp., the Calculation Agent of the ETNs, is electing to exercise its right to increase the Financing Spread for the ETNs. Capitalized terms used but not defined herein shall have the meanings ascribed to such terms in the ETN Prospectus (as defined below) for the ETNs.
It is expected that effective as of February 6, 2026 (the "Fee Effective Date"), the Financing Spread will be increased as follows:
The closing Indicative Note Value of the ETNs reflect the daily deduction of a Daily Financing Charge and the other fees and charges described in the ETN Prospectus. The Daily Financing Charge is based on the Federal Reserve Bank Prime Loan Rate, plus the Financing Spread. Therefore, given that the Financing Spread is increasing, the Daily Financing Charge will also increase. As a result, the return on investor's ETNs will be adversely affected.
Holders of the ETNs may choose to continue to hold their ETNs, or they may choose to elect to require BMO to redeem their ETNs, in accordance with the terms of the ETNs, or sell their ETNs in the secondary market. As disclosed in the ETN Prospectus for the ETNs, the Minimum Redemption Amount will not be applicable for any redemption validly elected on or after the date of this announcement to and including the Fee Effective Date. Outside of this period, holders of the ETNs are required to redeem at least 25,000 ETNs at one time in order to exercise their right to require BMO to redeem them.
Disclosures
The issuance of this notice of the election to increase the Financing Spread may adversely impact your ability to sell the ETNs and/or will likely adversely impact the price at which investors may be able to sell their ETNs.
The ETNs are not intended to be "buy and hold" investments, and are not intended to be held to maturity. Instead, the ETNs are intended to be daily trading tools for sophisticated investors to manage daily trading risks as part of an overall diversified portfolio. The ETNs are designed to reflect a 3x leveraged long exposure to the performance of the S-Network MicroSectors™ Gold Miners Index (the "Index") on a daily basis, before taking into account the negative effect of the fees and charges. However, as a result of the daily resetting leverage, the returns on the ETNs over different periods of time can, and most likely will, differ significantly from three times the return on a direct long investment in the Index. The ETNs are designed to achieve their stated investment objectives on a daily basis. The performance of the ETNs over different periods of time can differ significantly from their stated daily objectives. The ETNs are considerably riskier than securities that have intermediate- or long-term investment objectives, and are not suitable for investors who plan to hold them for a period of more than one day or who have a "buy and hold" strategy. Investors should actively and continuously monitor their investments in the ETNs on an intra-day basis, and any decision to hold the ETNs for more than one day should be made with great care and only as the result of a series of daily (or more frequent) investment decisions to remain invested in the ETNs for the next one-day period. The ETNs are very sensitive to changes in the level of the Index, and returns on the ETNs may be negatively affected in complex ways by the volatility of the Index on a daily or intra-day basis. It is possible that investors will suffer significant losses in the ETNs even if the long-term performance of the Index is positive. Accordingly, the ETNs should be purchased only by sophisticated investors who understand and can bear the potential risks and consequences of the ETNs that are designed to provide exposure to the leveraged performance of the Index on a daily basis and that will be highly volatile and may experience significant losses, up to the entire amount invested, in a short period of time.
For additional information, including a discussion of the risks relating to an investment in the ETNs, please carefully read the pricing supplement and related documents that we have filed with respect to the ETNs (collectively, the "ETN Prospectus"). Investors should review the ETN Prospectus carefully prior to making an investment decision.
The ETN Prospectus can be found on EDGAR, the Securities and Exchange Commission (the "SEC") website at: www.sec.gov, as well as on the product websites at the following links: www.bmoetns.com and www.microsectors.com
Bank of Montreal, the issuer of the ETNs, has filed a registration statement (including a pricing supplement, product supplement, prospectus supplement and prospectus) with the SEC regarding the ETNs. Please read those documents and the other documents relating to this offering that Bank of Montreal has filed with the SEC for more complete information about Bank of Montreal and this offering. 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 offering of the ETNs, will arrange to send the pricing supplement, the product supplement, the prospectus supplement and the prospectus if so requested by calling toll-free at 1-877-369-5412.
The ETNs are senior, unsecured obligations of BMO, and are subject to BMO's credit risk.
Investment suitability must be determined individually for each investor, and the ETNs are not 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.
About REX Shares
REX Shares ("REX") is a leading provider of innovative exchange-traded products ("ETPs"). With over $8 billion in assets under management, REX is known for pioneering the MicroSectors™ and T-REX product lines, offering leveraged and inverse exposure to a variety of stocks and market sectors. REX continues to drive innovation through its growing suite of ETPs, serving investors seeking sophisticated trading tools, options-based income strategies, and unique crypto exposures.
For more information, please visit www.rexshares.com or www.microsectors.com
Follow REX (@REXShares) and MicroSectors (@msectors) on X.
REX Media Contacts: rexshares@gregoryfca.com
About BMO Financial Group
BMO Financial Group is the seventh largest bank in North America by assets, with total assets of $1.5 trillion as of October 31, 2025. Serving clients 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 approximately 13 million clients 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 stronger communities.
Bank of Montreal ETNs: US.ETN@bmo.com, +1 (877) 369-5412
Internet: www.bmo.com
MicroSectors™ and REX™ are trademarks of REX. The trademarks have been licensed for use for certain purposes by REX. The Index have been licensed for use by REX. The ETNs are not sponsored, endorsed, sold or promoted by REX or any of its affiliates or third-party licensors (collectively, "REX Index Parties"). REX Index Parties make no representation or warranty, express or implied, to the owners of the ETNs or any member of the public regarding the advisability of investing in securities generally or in the ETNs particularly or the ability of the Index to track general stock market performance.
BMO Announces Upcoming Reverse Splits of Two Series of its Exchange Traded Notes (NYSE Arca: GDXD and FNGD)
NEW YORK, Jan. 28, 2026 - Bank of Montreal ("BMO") announced today that it will be implementing reverse splits of two series of its outstanding Exchange Traded Notes listed in the table below (each, an "ETN" and, collectively, the "ETNs"). Each reverse split is expected to be effective at the open of trading on February 9, 2026 (the "Effective Date").
The table below summarizes the reverse splits.
Each series of ETNs is expected to begin trading on NYSE Arca, Inc. on a reverse split-adjusted basis on the Effective Date. Holders of a series of ETNs who purchased such ETNs prior to the Effective Date will receive reverse split-adjusted ETNs based on the applicable Reverse Split Ratio set forth in the table above. For example, a 1-for-10 Reverse Split Ratio means that holders of a series of ETNs who purchased such ETNs prior to the Effective Date will receive one reverse split-adjusted ETN for every ten pre-reverse split ETNs they hold.
In addition, investors that hold a number of ETNs not evenly divisible by the applicable Split Factor will receive a cash payment for any fractional ETNs remaining (the "Partials"). The cash payment due on any Partials for each series of ETNs is expected to be determined on February 18, 2026 and will equal, for each remaining ETN of that series, its closing Indicative Note Value on that date. BMO will make any cash payment due on any Partials for each series of ETNs in accordance with its standard procedures through The Depository Trust Company, and expects that these amounts will be paid to holders of such ETNs on or about February 20, 2026. Investors should note that the timing of crediting amounts to their accounts will depend on processing by their brokers or other intermediaries.
The closing Indicative Note Value of each series of ETNs on February 6, 2026 will be multiplied by the applicable Split Factor to determine the reverse split-adjusted closing Indicative Note Value of such ETNs. Following the reverse split, each series of ETNs will have a new CUSIP but will continue to trade under its current ticker symbol.
Each reverse split will affect the trading denominations of the applicable series of ETNs, but will not have any effect on the aggregate principal amount of such ETNs, except that the aggregate principal amount of a series of ETNs will be reduced by the corresponding aggregate amount of any cash payments for any Partials applicable to those ETNs.
Capitalized terms used but not defined herein shall have the meanings ascribed to such terms in the applicable ETN Prospectus (as defined below).
Illustration of a Reverse Split
The following table shows the effect of a hypothetical 1-for-10 reverse split based on a hypothetical number of ETNs held and a hypothetical closing Indicative Note Value for the ETNs. The closing Indicative Note Value of an ETN is not the same as the trading price of such ETN.
Disclosures
The ETNs are not intended to be "buy and hold" investments and are not intended to be held to maturity. Instead, the ETNs are intended to be daily trading tools for sophisticated investors to manage daily trading risks as part of an overall diversified portfolio. The ETNs are designed to reflect a 3x leveraged short exposure to the performance of the relevant index on a daily basis, before taking into account the negative effect of the fees and charges. However, due to the daily resetting leverage, the returns on the ETNs over different periods of time can, and most likely will, differ significantly from three times the return on a direct short investment in the relevant index. The ETNs are designed to achieve their stated investment objectives on a daily basis. The performance of the ETNs over different periods of time can differ significantly from their stated daily objectives. The ETNs are considerably riskier than securities that have intermediate- or long-term investment objectives and are not suitable for investors who plan to hold them for a period of more than one day or who have a "buy and hold" strategy. Investors should actively and continuously monitor their investments in the ETNs on an intraday basis, and any decision to hold the ETNs for more than one day should be made with great care and only as the result of a series of daily (or more frequent) investment decisions to remain invested in the ETNs for the next one-day period. The ETNs are very sensitive to changes in the level of the relevant index, and returns on the ETNs may be negatively impacted in complex ways by the volatility of the relevant index on a daily or intraday basis. It is possible that you will suffer significant losses in the ETNs even if the long-term performance of the relevant index is negative. Accordingly, the ETNs should be purchased only by sophisticated investors who understand and can bear the potential risks and consequences of the ETNs that are designed to provide leveraged exposure to the short performance of the relevant index on a daily basis and that will be highly volatile and may experience significant losses, up to the entire amount invested, in a short period of time.
For additional information, including a discussion of the risks relating to an investment in the ETNs, please carefully read the applicable pricing supplement and related documents that we have filed with respect to the ETNs (each, an "ETN Prospectus"). Investors should review the relevant ETN Prospectus carefully prior to making an investment decision.
The ETN Prospectus relating to each series of ETNs can be found on EDGAR, the Securities and Exchange Commission (the "SEC") website at: www.sec.gov, as well as on the product websites at the following links: www.bmoetns.com and www.microsectors.com.
Bank of Montreal, the issuer of each series of the ETNs, has filed a registration statement (including a pricing supplement, product supplement (if applicable), prospectus supplement and prospectus) with the SEC regarding each series of the ETNs. Please read those documents and the other documents relating to these securities that Bank of Montreal has filed with the SEC for more complete information about Bank of Montreal and the applicable securities. 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 offering of the ETNs, will arrange to send the applicable pricing supplement, the product supplement (if applicable), the prospectus supplement and the prospectus if so requested by calling toll-free at 1-877-369-5412.
The ETNs are senior, unsecured obligations of BMO, and are subject to BMO's credit risk.
Investment suitability must be determined individually for each investor, and the ETNs are not 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.
About REX Shares
REX Shares ("REX") is a leading provider of innovative exchange-traded products ("ETPs"). With over $8 billion in assets under management, REX is known for pioneering the MicroSectors™ and T-REX product lines, offering leveraged and inverse exposure to a variety of stocks and market sectors. REX continues to drive innovation through its growing suite of ETPs, serving investors seeking sophisticated trading tools, options-based income strategies, and unique crypto exposures.
For more information, please visit www.rexshares.com or www.microsectors.com
Follow REX (@REXShares) and MicroSectors (@msectors) on X.
REX Media Contacts: rexshares@gregoryfca.com
About BMO Financial Group
BMO Financial Group is the seventh largest bank in North America by assets, with total assets of $1.5 trillion as of October 31, 2025. 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.
Bank of Montreal ETNs: US.ETN@bmo.com, +1 (877) 369-5412
Internet: www.bmo.com
MicroSectors™ and REX™ are trademarks of REX. The trademarks have been licensed for use for certain purposes by REX. The Index have been licensed for use by REX. The ETNs are not sponsored, endorsed, sold or promoted by REX or any of its affiliates or third-party licensors (collectively, "REX Index Parties"). REX Index Parties make no representation or warranty, express or implied, to the owners of the ETNs or any member of the public regarding the advisability of investing in securities generally or in the ETNs particularly or the ability of the Index to track general stock market performance.
BMO Increases the Financing Spread for its MicroSectors™ Gold Miners 3X Leveraged ETNs (NYSE Arca: GDXU)
NEW YORK, Nov. 14, 2025 – Bank of Montreal (“BMO”) today announced that, pursuant to the terms of BMO’s MicroSectors™ Gold Miners 3X Leveraged Exchange Traded Notes due June 29, 2040 (the “ETNs”), BMO Capital Markets Corp., the calculation agent of the ETNs, has elected to exercise its right to increase the Financing Spread for the ETNs.
Capitalized terms used but not defined herein have the meanings ascribed to them in the ETN Prospectus (as defined below).
Financing Spread Increase
It is expected that, effective as of November 21, 2025 (the “Fee Effective Date”), the Financing Spread will be increased as follows:
The closing Indicative Note Value of the ETNs reflects the daily deduction of a Daily Financing Charge, along with other fees and charges described in the ETN Prospectus. The Daily Financing Charge is based on the Federal Reserve Bank Prime Loan Rate plus the Financing Spread. As a result of the increase in the Financing Spread, the Daily Financing Charge will also increase, and returns on the ETNs will be adversely affected.
Redemption Rights
Holders of the ETNs may:
-
Continue to hold their ETNs
-
Elect to require BMO to redeem their ETNs in accordance with the terms of the ETNs
-
Sell their ETNs in the secondary market
As disclosed in the ETN Prospectus, the Minimum Redemption Amount will not apply to any redemption validly elected from the date of this announcement through the Fee Effective Date. Outside of this period, holders must redeem at least 25,000 ETNs at one time to exercise their redemption right.
Disclosures
The issuance of this notice may adversely impact your ability to sell the ETNs and/or the price at which you may be able to sell them.
The ETNs are not intended to be “buy and hold” investments and are not intended to be held to maturity. The ETNs are designed as daily trading tools for sophisticated investors and seek to provide 3x leveraged long exposure, on a daily basis and before fees, to the performance of the S-Network MicroSectors™ Gold Miners Index (the “Index”).
Due to daily leverage resetting, returns over periods longer than one day can differ significantly—and likely will differ—from three times the return of a direct investment in the Index. The ETNs are considerably riskier than securities with intermediate- or long-term investment objectives and are not suitable for investors who plan to hold them for more than one day or who follow a buy-and-hold strategy.
Investors should actively and continuously monitor their investments on an intraday basis. The ETNs are highly sensitive to changes in the level and volatility of the Index, and it is possible to incur significant losses, including the entire amount invested, even if the long-term performance of the Index is positive.
Additional Information
For additional information, including a discussion of the risks associated with an investment in the ETNs, investors should carefully read the pricing supplement and related documents (collectively, the “ETN Prospectus”) before making an investment decision.
The ETN Prospectus is available on EDGAR at www.sec.gov and on the product websites:
The ETNs are senior, unsecured obligations of BMO and are subject to BMO’s credit risk. This information is not intended to provide accounting, legal, regulatory, or tax advice. Investors should consult their own financial advisors.
About REX Shares
REX Shares (“REX”) is a leading provider of innovative exchange-traded products (ETPs), with over $8 billion in assets under management. REX pioneered the MicroSectors™ and T-REX™ product lines, offering leveraged and inverse exposure to individual stocks and market sectors, as well as options-based income strategies and crypto-related exposures.
For more information, visit www.rexshares.com or www.microsectors.com.
Follow REX (@REXShares) and MicroSectors (@msectors) on X.
Media Contact: rexshares@gregoryfca.com
BMO Announces a Reverse Split of its MicroSectors™ Gold Miners -3X Inverse Leveraged ETNs (NYSE Arca: GDXD)
NEW YORK, Oct. 9, 2025 - Bank of Montreal ("BMO") announced today that it will implement a 1-for-20 reverse split of its outstanding MicroSectors™ Gold Miners -3X Inverse Leveraged Exchange Traded Notes due June 29, 2040 (the "ETNs"), expected to be effective as of October 22, 2025.
The table below summarizes the reverse split.
The reverse split is expected to be effective at the open of trading on October 22, 2025 (the "Effective Date"). The ETNs are expected to begin trading on the NYSE Arca, Inc. on a reverse split-adjusted basis on the Effective Date. Holders of the ETNs who purchased the ETNs prior to the Effective Date will receive one reverse split-adjusted ETN for every twenty pre-reverse split ETNs they hold.
In addition, investors that hold a number of ETNs not evenly divisible by twenty will receive a cash payment for any fractional ETNs remaining (the "Partials"). The cash payment due on any Partials is expected to be determined on October 27, 2025 and will equal, for each remaining ETN, its closing Indicative Note Value on that date. BMO will make any cash payment due on any Partials in accordance with its standard procedures through The Depository Trust Company, and expects that these amounts will be paid to holders on or about October 30, 2025. Investors should note that the timing of crediting amounts to their accounts will depend on the processing by their brokers or other intermediaries.
The closing Indicative Note Value of the ETNs on October 21, 2025 will be multiplied by twenty (20) to determine the reverse split-adjusted closing Indicative Note Value of the ETNs. Following the reverse split, the ETNs will have a new CUSIP but will continue to trade under the current ticker symbol.
The reverse split will affect the trading denominations of the ETNs, but it will not have any effect on 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 any Partials.
Capitalized terms used but not defined herein shall have the meanings ascribed to such terms in the ETN Prospectus (as defined below).
Illustration of a Reverse Split
The following table shows the effect of a hypothetical 1-for-20 reverse split based on a hypothetical number of ETNs held and a hypothetical closing Indicative Note Value for the ETNs. The closing Indicative Note Value of the ETN is not the same as the trading price of the ETNs.
The ETNs are not intended to be "buy and hold" investments, and are not intended to be held to maturity. Instead, the ETNs are intended to be daily trading tools for sophisticated investors to manage daily trading risks as part of an overall diversified portfolio. The ETNs are designed to reflect a 3x leveraged short exposure to the performance of the S-Network MicroSectors™ Gold Miners Index (the "Index") on a daily basis, before taking into account the negative effect of the fees and charges. However, due to the daily resetting leverage, the returns on the ETNs over different periods of time can, and most likely will, differ significantly from three times the return on a direct short investment in the Index. The ETNs are designed to achieve their stated investment objectives on a daily basis. The performance of the ETNs over different periods of time can differ significantly from their stated daily objectives. The ETNs are considerably riskier than securities that have intermediate- or long-term investment objectives, and are not suitable for investors who plan to hold them for a period of more than one day or who have a "buy and hold" strategy. Investors should actively and continuously monitor their investments in the ETNs on an intraday basis, and any decision to hold the ETNs for more than one day should be made with great care and only as the result of a series of daily (or more frequent) investment decisions to remain invested in the ETNs for the next one-day period. The ETNs are very sensitive to changes in the level of the Index, and returns on the ETNs may be negatively impacted in complex ways by the volatility of the Index on a daily or intraday basis. It is possible that you will suffer significant losses in the ETNs even if the long-term performance of the Index is negative. Accordingly, the ETNs should be purchased only by sophisticated investors who understand and can bear the potential risks and consequences of the ETNs that are designed to provide leveraged exposure to the short performance of the Index on a daily basis and that will be highly volatile and may experience significant losses, up to the entire amount invested, in a short period of time.
For additional information, including a discussion of the risks relating to an investment in the ETNs, please carefully read the pricing supplement and related documents that we have filed with respect to the ETNs (collectively, the "ETN Prospectus"). Investors should review the ETN Prospectus carefully prior to making an investment decision.
The ETN Prospectus can be found on EDGAR, the Securities and Exchange Commission (the "SEC") website at: www.sec.gov, as well as on the product websites at the following links: www.bmoetns.com and www.microsectors.com
Bank of Montreal, the issuer of the ETNs, has filed a registration statement (including a pricing supplement, product supplement, prospectus supplement and prospectus) with the SEC regarding the ETNs. Please read those documents and the other documents relating to this offering that Bank of Montreal has filed with the SEC for more complete information about Bank of Montreal and this offering. 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 offering of the ETNs, will arrange to send the pricing supplement, the product supplement, the prospectus supplement and the prospectus if so requested by calling toll-free at 1-877-369-5412.
The ETNs are senior, unsecured obligations of BMO, and are subject to BMO's credit risk.
Investment suitability must be determined individually for each investor, and the ETNs are not 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.
About REX Shares
REX Shares ("REX") is a leading provider of innovative exchange-traded products ("ETPs"). With over $8 billion in assets under management, REX is known for pioneering the MicroSectors™ and T-REX product lines, offering leveraged and inverse exposure to a variety of stocks and market sectors. REX continues to drive innovation through its growing suite of ETPs, serving investors seeking sophisticated trading tools, options-based income strategies, and unique crypto exposures.
For more information, please visit www.rexshares.com or www.microsectors.com
Follow REX (@REXShares) and MicroSectors (@msectors) on X.
REX Media Contacts: rexshares@gregoryfca.com
About BMO Financial Group
BMO Financial Group is the seventh largest bank in North America by assets, with total assets of $1.4 trillion as of July 31, 2025. 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.
Bank of Montreal ETNs: US.ETN@bmo.com, +1 (877) 369-5412
Internet: www.bmo.com
MicroSectors™ and REX™ are trademarks of REX. The trademarks have been licensed for use for certain purposes by REX. The Index have been licensed for use by REX. The ETNs are not sponsored, endorsed, sold or promoted by REX or any of its affiliates or third-party licensors (collectively, "REX Index Parties"). REX Index Parties make no representation or warranty, express or implied, to the owners of the ETNs or any member of the public regarding the advisability of investing in securities generally or in the ETNs particularly or the ability of the Index to track general stock market performance.
BMO Announces Upcoming Ticker Symbol Change for MicroSectors™ FANG+™ 3× Leveraged ETNs
NEW YORK, June 2, 2025 /PRNewswire/ - Bank of Montreal ("BMO") today announced its plan to change the ticker symbol for the MicroSectors™ FANG+™ 3× Leveraged ETNs due February 17, 2045, CUSIP: 063679385 (the "ETNs"). The ETNs are currently listed on the NYSE Arca, Inc. under the ticker symbol "FNGB."
The current and expected ticker symbols for the ETNs are listed in the table below. These changes are expected to be effective at the open of trading on June 24, 2025.
|
ETN Title
|
CUSIP |
Current ETN |
New ETN |
|
MicroSectors™ FANG+™ 3× |
063679385 |
FNGB |
FNGU* |
|
*BMO is reusing the "FNGU" ticker symbol for its new FNGB ETNs after the required "cooling off" period |
|||
Capitalized terms used but not defined herein shall have the meanings ascribed to such terms in the ETN Prospectus (as defined below).
Disclosures
The ETNs are not intended to be "buy and hold" investments, and are not intended to be held to maturity. Instead, the ETNs are intended to be daily trading tools for sophisticated investors to manage daily trading risks as part of an overall diversified portfolio. The ETNs are designed to reflect a 3× leveraged long exposure to the performance of the gross total return version of the NYSE FANG+® Index (the "Index") on a daily basis, before taking into account the negative effect of the fees and charges. However, due to the daily resetting leverage, the returns on the ETNs over different periods of time can, and most likely will, differ significantly from three times the return on a direct long investment in the Index. The ETNs are designed to achieve their stated investment objectives on a daily basis. The performance of the ETNs over different periods of time can differ significantly from their stated daily objectives. The ETNs are considerably riskier than securities that have intermediate- or long-term investment objectives, and are not suitable for investors who plan to hold them for a period of more than one day or who have a "buy and hold" strategy. Investors should actively and continuously monitor their investments in the ETNs on an intra-day basis, and any decision to hold the ETNs for more than one day should be made with great care and only as the result of a series of daily (or more frequent) investment decisions to remain invested in the ETNs for the next one-day period. The ETNs are very sensitive to changes in the level of the Index, and returns on the ETNs may be negatively impacted in complex ways by the volatility of the Index on a daily or intraday basis. It is possible that you will suffer significant losses in the ETNs even if the long-term performance of the Index is positive. Accordingly, the ETNs should be purchased only by sophisticated investors who understand and can bear the potential risks and consequences of the ETNs that are designed to provide exposure to the leveraged performance of the Index on a daily basis and that will be highly volatile and may experience significant losses, up to the entire amount invested, in a short period of time.
For additional information, including a discussion of the risks relating to an investment in the ETNs, please carefully read the pricing supplement and related documents that we have filed with respect to the ETNs (collectively, the "ETN Prospectus"). Investors should review the ETN Prospectus carefully prior to making an investment decision.
The ETN Prospectus can be found on EDGAR, the Securities and Exchange Commission (the "SEC") website at: www.sec.gov, as well as on the product websites at the following links: www.bmoetns.com and www.microsectors.com
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. Please read those documents and the other documents relating to this offering that Bank of Montreal has filed with the SEC for more complete information about Bank of Montreal and this offering. 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 offering of the ETNs, will arrange to send the pricing supplement, the prospectus supplement and the prospectus if so requested by calling toll-free at 1-877-369-5412.
The ETNs are senior, unsecured obligations of BMO, and are subject to BMO's credit risk.
Investment suitability must be determined individually for each investor, and the ETNs are not 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.
About REX Shares
REX Shares ("REX") is a leading provider of innovative exchange-traded products ("ETPs"). With over $6 billion in assets under management, REX is known for pioneering the MicroSectors™ and T-REX product lines, offering leveraged and inverse exposure to a variety of stocks and market sectors. REX continues to drive innovation through its growing suite of ETPs, serving investors seeking sophisticated trading tools, options-based income strategies, and unique crypto exposures.
For more information, please visit www.rexshares.com or www.microsectors.com
Follow REX (@REXShares) and MicroSectors (@msectors) on X.
REX Media Contacts: rexshares@gregoryfca.com
About BMO Financial Group
BMO Financial Group is the seventh largest bank in North America by assets, with total assets of $1.4 trillion as of April 30, 2025. 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.
Bank of Montreal ETNs: US.ETN@bmo.com, +1 (877) 369-5412
Internet: www.bmo.com
The NYSE FANG+® Index is a product of ICE Data Indices, LLC ("ICE Data") and is used with permission. ICE® is a registered trademark of ICE Data or its affiliates. NYSE® is a registered trademark of NYSE Group, Inc., an affiliate of ICE Data and is used by ICE Data with permission and under a license. ICE Data and its Third Party Suppliers accept no liability in connection with the use of the NYSE FANG+® Index or marks. See the applicable ETN Prospectus for a full copy of the Disclaimer.
MicroSectors™ and REX™ are trademarks of REX. The trademarks have been licensed for use for certain purposes by REX. The indices have been licensed for use by REX. The ETNs are not sponsored, endorsed, sold or promoted by REX or any of its affiliates or third party licensors (collectively, "REX Index Parties"). REX Index Parties make no representation or warranty, express or implied, to the owners of the ETNs or any member of the public regarding the advisability of investing in securities generally or in the ETNs particularly or the ability of the indices to track general stock market performance.
SOURCE BMO Financial Group
BMO and REX Shares Launch U.S. Big Banks and U.S. Big Oil Leveraged & Inverse Leveraged Exchange Traded Notes on NYSE Arca
NEW YORK, Feb. 19, 2025 - In a demonstration of their commitment to the MicroSectors™ product line, Bank of Montreal ("BMO") and REX Shares, LLC ("REX") today announced the launch of the following U.S. Big Banks and U.S. Big Oil Leveraged and Inverse Leveraged MicroSectors™ Exchange Traded Notes ("ETNs") issued by BMO:
Each series of ETNs will start trading tomorrow on the NYSE Arca, Inc. under the applicable ticker symbol identified above. Each series of ETNs is intended to offer sophisticated investors three times leveraged long or short, as applicable, participation in the daily performance of the relevant index, before taking into account fees, charges and the decay effect caused by the daily resetting of the leverage.
The MicroSectors™ U.S. Big Banks 3× Leveraged ETNs and the MicroSectors™ U.S. Big Banks -3× Inverse Leveraged ETNs are linked to the gross total return version of the Solactive MicroSectors™ U.S. Big Banks Index. The Solactive MicroSectors™ U.S. Big Banks Index is an equally-weighted equity index that tracks the performance of 10 of the largest (determined by free-float market capitalization) U.S. stocks included in the banking and investment services sectors, based on the sector classification from FactSet RBICS (Revere Business Industry Classification System). The ticker symbol of the Solactive MicroSectors™ U.S. Big Banks Index is "SOLUSBBT".
The MicroSectors™ U.S. Big Oil 3× Leveraged ETNs and the MicroSectors™ U.S. Big Oil -3× Inverse Leveraged ETNs are linked to the gross total return version of the Solactive MicroSectors™ U.S. Big Oil Index. The Solactive MicroSectors™ U.S. Big Oil Index is an equally-weighted equity index that tracks the performance of 10 of the largest (determined by free-float market capitalization) U.S. stocks included in the Upstream Energy, Integrated Oil and Gas Exploration and Production, and Downstream and Midstream Energy sectors, based on the sector classification from FactSet RBICS (Revere Business Industry Classification System). The ticker symbol of the Solactive MicroSectors™ U.S. Big Oil Index is "SOLUSBOT".
Each index is a total return index, in which dividends paid on the applicable securities are included in the level of the applicable index.
For the first 6 months after the Initial Trade Date, the Daily Investor Fee for each series ETNs will be discounted, based on a rate of 0.35% per annum. Thereafter, the Daily Investor Fee for each series of ETNs will be based on a rate of 0.95% per annum. See the applicable pricing supplement for more information regarding the fees and charges applicable to the ETNs.
Disclosures
The ETNs are not intended to be "buy and hold" investments, and are not intended to be held to maturity. Instead, the ETNs are intended to be daily trading tools for sophisticated investors to manage daily trading risks as part of an overall diversified portfolio. The ETNs are designed to reflect a 3× leveraged long or short, as applicable, exposure to the performance of the relevant index on a daily basis, before taking into account the negative effect of the fees and charges. However, due to the daily resetting leverage, the returns on the ETNs over different periods of time can, and most likely will, differ significantly from three times the return on a direct long or short investment in the relevant index. The ETNs are designed to achieve their stated investment objectives on a daily basis. The performance of the ETNs over different periods of time can differ significantly from their stated daily objectives. The ETNs are considerably riskier than securities that have intermediate- or long-term investment objectives, and are not suitable for investors who plan to hold them for a period of more than one day or who have a "buy and hold" strategy. Investors should actively and continuously monitor their investments in the ETNs on an intra-day basis, and any decision to hold the ETNs for more than one day should be made with great care and only as the result of a series of daily (or more frequent) investment decisions to remain invested in the ETNs for the next one-day period. The ETNs are very sensitive to changes in the level of the relevant index, and returns on the ETNs may be negatively impacted in complex ways by the volatility of the relevant index on a daily or intraday basis. It is possible that you will suffer significant losses in the ETNs that provide leveraged long exposure even if the long-term performance of the relevant index is positive. Similarly, it is possible that you will suffer significant losses in the ETNs that provide short leveraged exposure even if the long-term performance of the relevant index is negative. Accordingly, the ETNs should be purchased only by sophisticated investors who understand and can bear the potential risks and consequences of the ETNs that are designed to provide leveraged exposure to the long or short, as applicable, performance of the relevant index on a daily basis and that will be highly volatile and may experience significant losses, up to the entire amount invested, in a short period of time.
For additional information, including a discussion of the risks relating to an investment in the ETNs, please carefully read the applicable pricing supplement and related documents that we have filed with respect to the ETNs (each, an "ETN Prospectus"). Investors should review the relevant ETN Prospectus carefully prior to making an investment decision.
The ETN Prospectus relating to the each series of ETNs can be found on EDGAR, the Securities and Exchange Commission (the "SEC") website at: www.sec.gov, as well as on the product websites at the following links: www.bmoetns.com and www.microsectors.com
Bank of Montreal, the issuer of each series of the ETNs, has filed a registration statement (including a pricing supplement, prospectus supplement and prospectus) with the SEC regarding each of series of the ETNs. Please read those documents and the other documents relating to these securities that Bank of Montreal has filed with the SEC for more complete information about Bank of Montreal and the applicable securities. 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 offering of the ETNs, will arrange to send the applicable pricing supplement, the product supplement (if applicable), the prospectus supplement and the prospectus if so requested by calling toll-free at 1-877-369-5412.
The ETNs are senior, unsecured obligations of BMO, and are subject to BMO's credit risk.
Investment suitability must be determined individually for each investor, and the ETNs are not 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.
About REX Shares
REX Shares ("REX") is a leading provider of innovative exchange-traded products (ETPs), specializing in alternative strategy ETFs and ETNs. With over $8 billion in assets under management, REX is known for pioneering the MicroSectors™ and T-REX product lines, offering leveraged and inverse exposure to a variety of market sectors. REX also provides a number of services for its crypto-focused sister company, Osprey Funds, LLC. REX continues to drive industry innovation through its growing suite of ETPs, serving investors seeking sophisticated trading tools, income strategies, and other alternative exposures.
For more information, please visit www.rexshares.com or www.microsectors.com
Follow REX (@REXShares) and MicroSectors (@msectors) on X.
For media inquiries, please contact:
Gregory FCA for REX Shares
About BMO Financial Group
BMO Financial Group is the eighth largest bank in North America by assets, with total assets of $1.41 trillion as of October 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.
Internet: www.bmo.com
Solactive AG ("Solactive") is the licensor of the Solactive MicroSectors™ U.S. Big Oil Index and the Solactive MicroSectors™ U.S. Big Banks Index (the "Solactive Indices"). The ETNs that are based on the Solactive Indices are not sponsored, endorsed, promoted or sold by Solactive in any way and Solactive makes no express or implied representation, guarantee or assurance with regard to: (a) the advisability in investing in the ETNs; (b) the quality, accuracy and/or completeness of the Solactive Indices; and/or (c) the results obtained or to be obtained by any person or entity from the use of the Solactive Indices. Solactive reserves the right to change the methods of calculation or publication with respect to the Solactive Indices. Solactive shall not be liable for any damages suffered or incurred as a result of the use (or inability to use) of the Solactive Indices.
MicroSectors™ and REX™ are trademarks of REX. The trademarks have been licensed for use for certain purposes by REX. The indices have been licensed for use by REX. The ETNs are not sponsored, endorsed, sold or promoted by REX or any of its affiliates or third party licensors (collectively, "REX Index Parties"). REX Index Parties make no representation or warranty, express or implied, to the owners of the ETNs or any member of the public regarding the advisability of investing in securities generally or in the ETNs particularly or the ability of the indices to track general stock market performance.
BMO Announces Upcoming Redemption and Ticker Symbol Change for MicroSectorsTM FANG+™ Index 3× Leveraged ETNs (Ticker: FNGU) as well as the Launch of a New MicroSectorsTM Exchange Traded Note ("ETN"), the MicroSectorsTM FANG+™ 3× Leveraged ETNs (Ticker: FNGB)
NEW YORK, Feb. 19, 2025 - Bank of Montreal ("BMO") announced today (i) its intention to redeem all of the outstanding securities of its MicroSectorsTM FANG+™ Index 3× Leveraged ETNs due January 8, 2038, CUSIP: 063679534 (the "FNGU ETNs"); (ii) its plan to change the ticker symbol for the FNGU ETNs; and (iii) the launch of a new ETN, the MicroSectors™ FANG+™ 3× Leveraged ETNs due January 23, 2045, CUSIP: 063679385 (the "FNGB ETNs"), which is expected to reuse the "FNGU" ticker symbol at a later date.
The table below summarizes the announcements being made with respect to the FNGU ETNs and the FNGB ETNs.
Capitalized terms used but not defined herein shall have the meanings ascribed to such terms in the applicable ETN Prospectus (as defined below) for the relevant ETNs.
Redemption and Ticker Change of FNGU ETNs
BMO intends to redeem all of the outstanding FNGU ETNs on the Call Settlement Date, which is expected to be May 15, 2025. In anticipation of this redemption, BMO also plans to change the ticker symbol for the FNGU ETNs from "FNGU" to "FNGA," which is expected to be effective at the open of trading on March 3, 2025 (the "ticker symbol change date").
The FNGU ETNs were launched in January 2018 with fees and charges that reflected the then-current market environment. BMO is redeeming the FNGU ETNs because the costs associated with supporting the leverage embedded in the FNGU ETNs have increased and, therefore, the existing fees and charges applicable to the FNGU ETNs no longer reflect the current market environment. BMO is changing the ticker symbol of the FNGU ETNs from "FNGU" to "FNGA" with the expectation that it will reuse the "FNGU" ticker symbol approximately 90 days after the ticker symbol change date (which is the required "cooling off" period under the NYSE Arca, Inc.'s (the "NYSE") guidelines) for its new FNGB ETNs.
Further details regarding the redemption of the FNGU ETNs are provided below.
Launch of New FNGB ETNs
BMO launched today a new MicroSectors™ ETN linked to the gross total return version of the NYSE FANG+® Index (the "Index"). The FNGB ETNs will start trading tomorrow on the NYSE under the ticker symbol "FNGB." The FNGB ETNs are intended to offer sophisticated investors three times leveraged participation in the daily performance of the Index, before taking into account fees, charges and the decay effect caused by the daily resetting of the leverage. The FNGB ETNs are meant to replace the FNGU ETNs and provide investors continued access to an ETN with three times leveraged, daily resetting, exposure to the Index, but with fees and charges that reflect the current market environment.
The Index, which is the same index that the FNGU ETNs are linked to, is an equally-weighted equity index that tracks the performance of 10 highly-traded growth stocks of technology and tech-enabled companies in the technology, media & communications and consumer discretionary sectors. The Index is a total return index, in which dividends paid on the applicable securities are included in the level of the Index. The ticker symbol of the Index is "NYFANGT".
Given the FNGB ETNs are meant to replace the FNGU ETNs and given the "FNGU" ticker is recognizable in the exchange traded product market for three times leveraged, daily resetting, exposure to the Index, BMO intends to reuse the "FNGU" ticker for the FNGB ETNs approximately 90 days after the ticker symbol change date. Once this change, for which BMO will issue another announcement, becomes effective, the FNGB ETNs are expected to trade under the ticker symbol "FNGU."
For the first 6 months after the Initial Trade Date, the Daily Investor Fee for the FNGB ETNs will be discounted, based on a rate of 0.35% per annum. Thereafter, the Daily Investor Fee will be based on a rate of 0.95% per annum. See the ETN Prospectus for the FNGB ETNs for more information regarding the fees and charges applicable to the FNGB ETNs.
Additional Information Related to the Redemption of the FNGU ETNs
BMO intends to send a notice of redemption to holders of the FNGU ETNs on May 1, 2025. The Call Calculation Date will be the Index Business Day after the call notice is issued, which is expected to be May 2, 2025. The Call Measurement Period will be the five Index Business Days from and including the Call Calculation Date, which are expected to be May 2, 2025, May 5, 2025, May 6, 2025, May 7, 2025 and May 8, 2025. The Call Measurement Period is subject to postponement in the event of a market disruption event as described in the ETN Prospectus for the FNGU ETNs. The Call Settlement Date will be the fifth Business Day following the last Index Business Day in the Call Measurement Period, which is expected to be May 15, 2025.
On the Call Settlement Date, holders of the FNGU ETNs will receive a cash payment equal to the Call Settlement Amount. The Call Settlement Amount will be determined in accordance with the terms of the FNGU ETNs and will be equal to the arithmetic mean of the closing Indicative Note Values on each Index Business Day in the Call Measurement Period. BMO will pay the applicable Call Settlement Amount to investors holding the FNGU ETNs on the applicable Call Settlement Date. Please refer to the ETN Prospectus for the FNGU ETNs for the additional information on the calculation of the Call Settlement Amount and the closing Indicative Note Values.
The FNGU ETNs will be delisted from the NYSE prior to the open of trading on the Call Settlement Date. Accordingly, the last day of trading for the FNGU ETNs is expected to be May 14, 2025.
Holders of the FNGU ETNs may choose to continue to hold their securities until the Call Settlement Date, or may choose to redeem their securities on or prior to May 1, 2025, in accordance with the terms of the FNGU ETNs, or sell their securities in the secondary market. BMO has announced the waiver of the minimum early redemption size for the FNGU ETNs. Prior to the waiver, holders of the FNGU ETNs were required to redeem at least 25,000 ETNs at one time in order to exercise their right to redeem them.
Disclosures
The issuance of this notice of our election to exercise our call right in whole may adversely impact your ability to sell the FNGU ETNs and/or the price at which you may be able to sell your FNGU ETNs prior to the Call Settlement Date.
Investors who purchase the FNGU ETNs at any time prior to the Call Settlement Date for an amount that is greater than the applicable Call Settlement Amount that they will receive on the Call Settlement Date will suffer a loss on their investment. Furthermore, investors who sell the FNGU ETNs at any time prior to delisting for an amount that is less than the applicable Call Settlement Amount they would have received on the Call Settlement Date will also suffer a loss. In either case, such losses could be significant. Investors will not receive any other compensation or amount for the loss of the investment opportunity of holding the FNGU ETNs.
The FNGB ETNs are not intended to be "buy and hold" investments, and are not intended to be held to maturity. Instead, the FNGB ETNs are intended to be daily trading tools for sophisticated investors to manage daily trading risks as part of an overall diversified portfolio. The FNGB ETNs are designed to reflect a 3× leveraged long exposure to the performance of the Index on a daily basis, before taking into account the negative effect of the fees and charges. However, due to the daily resetting leverage, the returns on the FNGB ETNs over different periods of time can, and most likely will, differ significantly from three times the return on a direct long investment in the Index. The FNGB ETNs are designed to achieve their stated investment objectives on a daily basis. The performance of the FNGB ETNs over different periods of time can differ significantly from their stated daily objectives. The FNGB ETNs are considerably riskier than securities that have intermediate- or long-term investment objectives, and are not suitable for investors who plan to hold them for a period of more than one day or who have a "buy and hold" strategy. Investors should actively and continuously monitor their investments in the FNGB ETNs on an intra-day basis, and any decision to hold the FNGB ETNs for more than one day should be made with great care and only as the result of a series of daily (or more frequent) investment decisions to remain invested in the FNGB ETNs for the next one-day period. The FNGB ETNs are very sensitive to changes in the level of the Index, and returns on the FNGB ETNs may be negatively impacted in complex ways by the volatility of the Index on a daily or intraday basis. It is possible that you will suffer significant losses in the FNGB ETNs even if the long-term performance of the Index is positive. Accordingly, the FNGB ETNs should be purchased only by sophisticated investors who understand and can bear the potential risks and consequences of the FNGB ETNs that are designed to provide exposure to the leveraged performance of the Index on a daily basis and that will be highly volatile and may experience significant losses, up to the entire amount invested, in a short period of time.
For additional information, including a discussion of the risks relating to an investment in the ETNs, please carefully read the applicable pricing supplement and related documents that we have filed with respect to the ETNs (each, an "ETN Prospectus"). Investors should review the relevant ETN Prospectus carefully prior to making an investment decision.
The ETN Prospectus relating to the each of the ETNs can be found on EDGAR, the Securities and Exchange Commission (the "SEC") website at: www.sec.gov, as well as on the product websites at the following links: www.bmoetns.com and www.microsectors.com
Bank of Montreal, the issuer of each series of the ETNs, has filed a registration statement (including a pricing supplement, product supplement (if applicable), prospectus supplement and prospectus) with the SEC regarding each of series of the ETNs. Please read those documents and the other documents relating to these securities that Bank of Montreal has filed with the SEC for more complete information about Bank of Montreal and the applicable securities. 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 offering of the ETNs, will arrange to send the applicable pricing supplement, the product supplement (if applicable), the prospectus supplement and the prospectus if so requested by calling toll-free at 1-877-369-5412.
The ETNs are senior, unsecured obligations of BMO, and are subject to BMO's credit risk.
Investment suitability must be determined individually for each investor, and the ETNs are not 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.
About REX Shares
REX Shares ("REX") is a leading provider of innovative exchange-traded products (ETPs), specializing in alternative strategy ETFs and ETNs. With over $8 billion in assets under management, REX is known for pioneering the MicroSectors™ and T-REX product lines, offering leveraged and inverse exposure to a variety of market sectors. REX also provides a number of services for its crypto-focused sister company, Osprey Funds, LLC. REX continues to drive industry innovation through its growing suite of ETPs, serving investors seeking sophisticated trading tools, income strategies, and other alternative exposures.
For more information, please visit www.rexshares.com or www.microsectors.com
Follow REX (@REXShares) and MicroSectors (@msectors) on X.
For media inquiries, please contact:
Gregory FCA for REX Shares
About BMO Financial Group
BMO Financial Group is the eighth largest bank in North America by assets, with total assets of $1.41 trillion as of October 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.
Internet: www.bmo.com
The NYSE FANG+® Index is a product of ICE Data Indices, LLC ("ICE Data") and is used with permission. ICE® is a registered trademark of ICE Data or its affiliates. NYSE® is a registered trademark of NYSE Group, Inc., an affiliate of ICE Data and is used by ICE Data with permission and under a license. ICE Data and its Third Party Suppliers accept no liability in connection with the use of the NYSE FANG+® Index or marks. See the applicable ETN Prospectus for a full copy of the Disclaimer.
MicroSectors™ and REX™ are trademarks of REX. The trademarks have been licensed for use for certain purposes by REX. The indices have been licensed for use by REX. The ETNs are not sponsored, endorsed, sold or promoted by REX or any of its affiliates or third party licensors (collectively, "REX Index Parties"). REX Index Parties make no representation or warranty, express or implied, to the owners of the ETNs or any member of the public regarding the advisability of investing in securities generally or in the ETNs particularly or the ability of the indices to track general stock market performance.
BMO Announces Redemption of Four Exchange Traded Notes ("ETNs")
NEW YORK, July 8, 2024 – Bank of Montreal (TSX:BMO)(NYSE:BMO) today announced that it intends to redeem all of the outstanding securities in each of the series set forth in the following table (collectively, the "Affected Securities"):
Capitalized terms used but not defined herein shall have the meanings ascribed to such terms in the relevant pricing supplement for the Affected Securities. The ETNs are senior, unsecured obligations of BMO, and are subject to BMO's credit risk.
With respect to each series of Affected Securities, the Call Settlement Amount payable on the Call Settlement Date will be calculated as specified in the relevant pricing supplement, as applicable, for the Affected Securities. BMO will pay the applicable Call Settlement Amount to investors holding Affected Securities on the applicable Call Settlement Date.
BMO intends to send a notice of redemption to holders of the Affected Securities on July 11, 2024. For each series of Affected Securities, the Call Settlement Amount will equal the arithmetic mean of the closing Indicative Note Values on each Index Business Day in the related Call Measurement Period. The Call Measurement Period is expected to consist of the following five trading days: July 12, 2024, July 15, 2024, July 16, 2024, July 17, 2024 and July 18, 2024.
Each series of Affected Securities will be delisted from the NYSE Arca exchange prior to the open of trading on the Call Settlement Date.
Holders of the Affected Securities may choose to continue to hold their securities until the Call Settlement Date, or may choose to sell or redeem their Affected Securities on or prior to July 11, 2024, in accordance with the terms of the Affected Securities. BMO has announced the waiver of the minimum early redemption size for each of the Affected Securities. Prior to the waiver, holders of the Affected Securities were required to redeem at least 25,000 ETNs at one time in order to exercise their right to redeem them.
None of the other ETNs that BMO has previously issued are affected by this announcement. In particular, as to the redemption of NRGU and NRGD, please note that BMO's exchange traded notes linked to the Solactive MicroSectors™ Energy Index (ticker symbols "WTIU" and "WTID") will remain outstanding.
BMO does not intend to issue or register any additional Affected Securities on or after the date of this press release. BMO and its affiliates also intend to suspend any further sales from inventory of the Affected Securities on July 11, 2024. The market value of these securities may be influenced by, among other things, supply and demand for the Affected Securities. It is possible that the suspension of any further sales of the Affected Securities by BMO may influence the market value of the Affected Securities and the liquidity of the market for the Affected Securities, potentially leading to insufficient supply, and causing the Affected Securities to trade at a premium above their closing or intraday indicative value. Any such premium may subsequently decrease at any time and for any reason without warning, resulting in financial loss to investors who paid this premium when they acquired their Affected Securities.
Investors who purchase the Affected Securities at any time prior to the Call Settlement Date for an amount that is greater than the applicable Call Settlement Amount that they will receive on the Call Settlement Date will suffer a loss on their investment. Furthermore, investors who sell the Affected Securities at any time prior to delisting for an amount that is less than the applicable Call Settlement Amount they would have received on the Call Settlement Date will also suffer a loss. In either case, such losses could be significant. Investors will not receive any other compensation or amount for the loss of the investment opportunity of holding the Affected Securities.
Bank of Montreal, the issuer of the securities described in this document, has filed a registration statement (including a pricing supplement, prospectus supplement and prospectus) with the SEC regarding each of these securities. Please read those documents and the other documents relating to these securities that Bank of Montreal has filed with the SEC for more complete information about Bank of Montreal and the applicable securities. 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 offering of the Affected Securities, 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.
About REX Shares
REX is an innovative ETF provider that specializes in alternative-strategy ETFs and ETNs. The firm created the MicroSectors™ and co-created the T-REX product lines of leveraged and inverse tools for traders. The firm is rooted in decades of experience building inventive solutions that solve for a range of specific challenges in investor and trader portfolios.
For more information, please visit www.rexshares.com or www.microsectors.com.
Follow REX (@REXShares) and MicroSectors (@msectors) on Twitter.
REX Media Contacts: rexshares@gregoryfca.com
About BMO Financial Group
BMO Financial Group is the eighth largest bank in North America by assets, with total assets of $1.4 trillion as of April 30, 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.
BMO Media Contact: Kelly Hechler, Kelly.Hechler@bmo.com, (416) 867-3996
Bank of Montreal ETNs: US.ETN@bmo.com, +1-877-369-5412
Internet: www.bmo.com
BMO Announces Reverse Split of Two Series of ETNs
NEW YORK, April 19, 2024 – 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:
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.
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.
About REX Shares
REX is an innovative ETF provider that specializes in alternative-strategy ETFs and ETNs. The firm created the MicroSectors™ and co-created the T-REX product lines of leveraged and inverse tools for traders. The firm is rooted in decades of experience building inventive solutions that solve for a range of specific challenges in investor and trader portfolios.
For more information, please visit www.rexshares.com or http://www.microsectors.com.
Follow REX (@REXShares) and MicroSectors (@msectors) on Twitter.
REX Media Contacts: media@rexshares.co
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.
BMO Media Contact: Kelly Hechler, Kelly.Hechler@bmo.com, (416) 867-3996
Bank of Montreal ETNs: US.ETN@bmo.com, +1-877-369-5412
Internet: www.bmo.com
BMO Announces the Reverse Split of Three Series of ETNs
NEW YORK, March 15, 2024 – Bank of Montreal (TSX:BMO)(NYSE:BMO) announced today that it will implement a 1-for-10 reverse split of three series of its outstanding exchange traded notes, as listed in the table below (the “ETNs” or “Notes”), expected to be effective as of March 25, 2024 (the “effective date,” or the “ex date”).
The table below indicates the ETNs that will be subject to the reverse split, their trading symbols, their current CUSIP numbers, and the CUSIP numbers that they will receive after giving effect to the reverse split:
The reverse split will be effective at the open of trading on March 25, 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 March 25, 2024 will receive one reverse split-adjusted ETN for every 10 pre-reverse split ETNs.
In addition, investors that hold a number of ETNs that are not evenly divisible by 10 will receive a cash payment for any fractional ETNs remaining (the "partials"). The cash amount due on any partials will be determined on March 28, 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 April 3, 2024.
The closing indicative value of each ETN on March 22, 2024 will be multiplied by 10 to determine the 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 the 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.
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 press 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 press release. Please read those documents and the other documents relating to the ETNs that Bank of Montreal has filed with the SEC for 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.
About REX Shares
REX is an innovative ETF provider that specializes in alternative-strategy ETFs and ETNs. The firm created the MicroSectors™ and co-created the T-REX product lines of leveraged and inverse tools for traders. The firm is rooted in decades of experience building inventive solutions that solve for a range of specific challenges in investor and trader portfolios.
For more information, please visit www.rexshares.com or www.microsectors.com.
Follow REX (@REXShares) and MicroSectors (@msectors) on Twitter.
REX Media Contacts: media@rexshares.com
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.
BMO Media Contact: Kelly Hechler, Kelly.Hechler@bmo.com, (416) 867-3996
Bank of Montreal ETNs: US.ETN@bmo.com, +1-877-369-5412
Internet: www.bmo.com