Bank of Montreal announces reverse division of FNGD ETNs

NEW YORK,, November 26, 2021 / PRNewswire / – Bank of Montreal (TSX: BMO) (NYSE: BMO) today announced the implementation of a 1 for 20 reverse split of its MicroSectors ™ FANG + ™ -3X Inverse Leveraged ETN due January 8, 2038 (the “ETNs”), which should come into force on December 6, 2021.

The table below shows the ETNs that will be reverse split, their trading symbol, their current CUSIP number and the CUSIP number they will receive after giving effect to the reverse split:

The reverse split will be effective when the stock market opens on December 6, 2021. Each ETN will begin trading on the NYSE Arca on a reverse split adjusted basis on that date. Holders of an ETN who bought this ETN before December 6, 2021 will receive one Reverse Split Adjusted ETN for every 20 reverse split ETNs.

In addition, investors who hold a number of ETNs that are not divisible by 20 will receive a cash payment for any remaining fraction of ETNs (the “Partials”). The amount of cash due on any partial will be determined on December 13, 2021 and will be equal, for each remaining ETN, to its indicative closing value on that date. Bank of Montreal will pay these amounts on or about December 16, 2021.

The indicative closing value of each ETN on December 3, 2021 will be multiplied by 20 to determine the indicative closing value corrected for the reverse split. After the reverse split, ETNs will have a new CUSIP, as noted above, but will continue to trade under their current ticker symbol.

The split will affect the trading names of the ETNs, but it will have no 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 payment for the “parties.”

Illustration of an inverted division

The following table shows the effect of the 1 for 20 split on the hypothetical ETN indicative closing value. The indicative closing value of an ETN is not the same as its principal amount (currently, $ 500) or the trading price of that ETN.

Number of
AND N

Hypothetical
Closing Indicative
Value

Global close
Indicative value

Pre-reverse split

100,000

$ 10.00

$ 1,000,000

1-for-20 Post-Reverse Split

5,000

$ 200.00

$ 1,000,000

None of the other exchange-traded notes issued by the Bank of Montreal are affected by this announcement.

ETNs are senior unsecured obligations of the Bank of Montreal.

The suitability of investments should be determined individually for each investor, and ETNs may not be suitable for all investors. This information is not intended to provide and should not be construed as providing accounting, legal, regulatory or tax advice. Investors should consult their own financial advisers on these matters.

The leveraged ETNs discussed in this press release are intended to be daily trading tools for sophisticated investors to manage day-to-day trading risks as part of a diversified overall portfolio. They are designed to meet their stated daily investment goals. The returns of 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.

Bank of Montreal, the issuer of the ETNs, has filed a registration statement (including a pricing supplement, a prospectus supplement and a prospectus) with the SEC relating to the ETNs referred to in this press release. Please read these and other ETN documents that Bank of Montreal has filed more complete information on Bank of Montreal and ETNs. These documents can be obtained free of charge by visiting EDGAR on the SEC’s website at www.sec.gov. Alternatively, the Bank of Montreal, and any agent or broker who has participated in the ETN offers, will arrange to send the applicable pricing supplement, prospectus supplement and prospectus on request by calling toll-free at 1-877-369-5412.

About REX shares

Founded in 2015, REX Shares (“REX”) is an independent provider of exchange traded products based in Fairfield, Connecticut. As ETP architects, the REX team creates investment vehicles that solve a range of specific challenges in investor portfolios. The company is rooted in decades of structuring and creating inventive solutions to exchange traded products.

For more information, please visit www.microsectors.com

Follow REX on Twitter @msectors

REX media contacts: [email protected]

About BMO Financial Group

Serving clients for 200+ years, BMO is a highly diversified financial services provider – the 8th largest bank in terms of assets, North America. With total assets of $ 971 billion from July 31, 2021, and a team of diverse and highly engaged employees, BMO provides a broad range of personal and commercial banking, wealth management and investment banking products and services to over 12 million clients and operates through the through three operating groups: Personal and Commercial Banking, BMO Wealth Management and BMO Capital Markets.

BMO Media Contact: Kelly Hechler, [email protected], (416) 867-3996

Bank of Montreal ETN: [email protected], + 1-877-369-5412

the Internet: www.bmo.com

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SOURCE BMO Financial Group

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