Direxion, a prominent issuer of leveraged ETFs, is intending to execute a 1 for 5 reverse split on shares of its Daily Large Cap Bear 3x Shares (BGZ). The split will be applied to its Daily Mid Cap Bear 3x Shares (MWN), Daily Developed Markets Bear 3x Shares (DPK) and Daily Semiconductor Bear 3x Shares (SOXS) as well. The Daily Small Cap Bear 3x Shares (TZA) will see a 1 for 3 split. The changes will be implemented to records after close of market on Feb 23rd, 2011.
The total number of shares will fall to a fifth of the original value and the value will rise by five times after execution of the procedure.
Market value of shares shall remain unaffected. Fractional shares of the ETFs shall be redeemed at split adjusted NAV as the execution date. Shareholders shall not bear any tax liability or fees for the transaction.
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