Bank of Montreal plans reverse split of MicroSectors Big Oil 3X ETNs

By Marisa Wong

Los Angeles, Oct. 7 – Bank of Montreal said it will implement a 1-for-20 reverse split of its MicroSectors U.S. Big Oil Index 3X Leveraged ETNs (Cusip: 063679815, NYSE Arca: NRGU) due March 25, 2039 linked to the Solactive MicroSectors U.S. Big Oil Index, Total Return.

The reverse split will be effective at the open of trading on Oct. 12.

The ETNs will begin trading on the NYSE Arca on a reverse split-adjusted basis on Oct. 12. Holders who purchased those ETNs prior to Oct. 12 will receive one reverse split-adjusted ETN for every 20 pre-reverse split ETNs.

In addition, those purchasers that hold a number of ETNs not evenly divisible by 20 will receive a cash payment for any fractional ETNs remaining. The cash amount due on any partials will be determined on Oct. 16 and will equal, for each remaining ETN, the closing indicative value of the ETNs on that date.

Bank of Montreal will pay these amounts on or about Oct. 21.

The closing indicative value of the ETNs on Oct. 9 will be multiplied by 20 to determine the reverse split-adjusted closing indicative value.

Following the reverse split, the ETNs will have a new Cusip but will retain its same ticker symbol.

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