Direxion is planning to execute a reverse share split and a forward share split of its leveraged exchange funds. Upon completion, the market value of all shares outstanding will not be affected. Shareholders who end up with fractional shares will be allowed to redeem the shares for cash at the Fund’s split-adjusted NAV as of the record date.
Proposed Reverse Split
Direxion Daily Natural Gas Related Bear 3X Shares (NYSEARCA:GASX) is to undergo a 1-for-4 reverse split once the market opens on August 25, 2016. The split is expected to result in a 75% decrease in the number of the Fund’s outstanding shares in the market.
Direxion Daily S&P Oil & Gas Exp. & Prod. Bear 3X Shares (NYSEARCA:DRIP), Direxion Shares Exchange Traded Fund Trust (NYSEARCA:DUST) and Direxion Daily Junior Gold Miners Index Bear 3X Shares, on the other hand, are to undergo a 1-for-5 reverse split the same day. The reverse split should result in an 80% decrease in outstanding shares.
Forward Splits
After the close of the market on August 24, 2016, Direxion also plans to carry out five forward splits. Direxion Daily Brazil Bull 3X Shares, Direxion Daily Real Estate Bull 3X Shares, Direxion Daily 20+ Treasury Bull 3X Shares are each to undergo a 4-for-1 forward split. The split should result in a 300% increase in outstanding shares on each Fund.
Direxion Daily Gold Miners Index Bull 3X Shares is to undergo a 5-for-1 forward split that is expected to result in a 400% increase in outstanding shares in the market. Direxion Daily Junior Gold Miners Index Bull 3X Shares, on the other hand, is subject to a 10-for-1 forward split resulting in a 900% increase in outstanding shares.
Shareholders holding the five ETF are to receive four, five and ten shares on each share held depending on the fund.
The proposed share split are to affect shareholders on record as of August 23, 2016.
