ProShares Announces ETF Reverse Share Split
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Bethesda, MD, August 28, 2012—ProShares, a premier provider of alternative exchange traded funds (ETFs), announced today a reverse share split on one of its ETFs, the ProShares Ultra VIX Short-Term Futures ETF (NYSE: UVXY). The reverse split will not change the value of a shareholder's investment. UVXY is the only ETF in the United States offering magnified exposure to VIX futures.
UVXY will reverse split shares 1-for-10. The reverse split will apply to shareholders of record as of the close of the markets on September 6, 2012. The fund will trade at its post-split price on September 7, 2012. The ticker symbol for the fund will not change. The fund will be issued a new CUSIP number.
|Ticker||Fund||Split Ratio||Old CUSIP||New CUSIP|
|UVXY||ProShares Ultra VIX Short-Term Futures ETF||1:10||74347W544||74347W411|
The reverse split will increase the price per share of the fund with a proportionate decrease in the number of shares outstanding. For example, for a 1-for-10 reverse split, every 10 pre-split shares held by a shareholder will result in the receipt of one post-split share, which will be priced 10 times higher than the net asset value ("NAV") of a pre-split share.
Fractional Shares from Reverse Splits
For shareholders who hold quantities of shares that are not an exact multiple of the reverse split ratio (for example, not a multiple of 10 for a 1-to-10 reverse split), the reverse split will result in the creation of a fractional share. Post-reverse split fractional shares will be redeemed for cash and sent to your broker of record. This redemption may cause some shareholders to realize gains or losses, which could be a taxable event for those shareholders.
Illustration of a Reverse Split
The following table shows the effect of a hypothetical 1-for-10 reverse split:
|Period # of Shares Owned||Hypothetical NAV||Value of Shares|
Offering the nation's largest lineup of alternative ETFs, ProShares enables investors to go beyond the limitations of conventional investing and meet today's market challenges. Each ProShares ETF provides access to an alternative investment strategy delivered with the liquidity, transparency and cost effectiveness of an ETF. ProShares' lineup of 138 ETFs includes Global Fixed Income, Hedge Strategies, Geared (leveraged and inverse), and Inflation and Volatility ETFs.
Tucker Hewes, Hewes Communications, Inc., 212.207.9451, email@example.com
Financial Professionals Contact:
ProShares, 866.776.5125, ProShares.comAug 28, 2012