NEW YORK, Nov. 2, 2015 /PRNewswire/ -- Global X Funds,
the New York based provider of
exchange traded funds (ETFs), announced today that its Board of
Trustees has approved reverse share splits for five of its
ETFs. The total market value of the shares outstanding will
not be affected as a result of these splits, except with respect to
the redemption of fractional shares, as outlined below.
The firm will execute a 1-for-3 reverse split of the shares of
the Global X Copper Miners ETF (COPX) and the Global X Silver
Miners ETF (SIL), effective at the open of the market on
November 18, 2015. The firm
will also execute a 1-for-2 reverse split of the shares of the
Global X Gold Explorers ETF (GLDX), Global X Lithium ETF (LIT) and
Global X Uranium ETF (URA), effective at the open of the market on
November 18, 2015.
A summary of the five ETFs undergoing reverse splits is as
follows (please note the CUSIP changes, effective November 18, 2015):
Fund
Name
|
Symbol
|
Current
CUSIP
|
New
CUSIP
|
Ratio
|
Global X Copper
Miners ETF
|
COPX
|
37950E861
|
37954Y830
|
1:3
|
Global X Silver
Miners ETF
|
SIL
|
37950E853
|
37954Y848
|
1:3
|
Global X Gold
Explorers ETF
|
GLDX
|
37950E283
|
37954Y863
|
1:2
|
Global X Lithium
ETF
|
LIT
|
37950E762
|
37954Y855
|
1:2
|
Global X Uranium
ETF
|
URA
|
37950E275
|
37954Y871
|
1:2
|
The reverse splits will raise the share price for each of the
Funds and decrease the number of shares outstanding. The total
value of shares outstanding is not affected by a split.
Hypothetical example of 1-for-3 reverse split:
Period
|
Number of Shares
Owned
|
Hypothetical Market
Price/Share ($U.S.)
|
Total Value
($U.S.)
|
Pre- reverse
split
|
600
|
$10
|
$6,000
|
Post- reverse
split
|
200
|
$30
|
$6,000
|
Hypothetical example of 1-for-2 reverse split:
Period
|
Number of Shares
Owned
|
Hypothetical Market
Price/Share ($U.S.)
|
Total Value
($U.S.)
|
Pre- reverse
split
|
600
|
$10
|
$6,000
|
Post- reverse
split
|
300
|
$20
|
$6,000
|
Redemption of Fractional Shares and Tax Consequences for Each
Reverse Split
As a result of the reverse splits, a shareholder of each ETF
could potentially hold a fractional share. However, fractional
shares cannot trade on NYSE Arca. Thus, each ETF will redeem for
cash a shareholder's fractional shares at the Fund's split-adjusted
NAV. Such redemptions could cause a shareholder to realize a gain
or loss. Otherwise, the reverse splits will not result in a taxable
transaction for holders of ETF shares. No transaction fee will be
imposed on shareholders for such redemptions.
"Odd Lot" Unit
As a result of the reverse splits, the ETFs will have
outstanding one aggregation of less than 50,000 shares to make a
creation unit, or an "odd lot unit." Thus, each ETF will provide
one authorized participant with a one-time opportunity to redeem
the respective odd lot unit at its split-adjusted NAV, or at the
NAV on such date the authorized participant seeks to redeem the odd
lot unit.
ABOUT GLOBAL X FUNDS
Global X is a New York-based
sponsor of exchange-traded funds (ETFs) and seeks to provide access
to high quality and cost efficient investment solutions. Founded in
2008, Global X is recognized for its smart core, income, alpha,
risk management and access suites of ETFs. With over 40 funds
available across U.S. and foreign exchanges, Global X is one of the
fastest growing, most nimble issuers of ETFs. For more
information about these ETFs, please visit
www.globalxfunds.com.
DISCLOSURE
Investing involves risk, including the possible loss of
principal. International investing may involve risk of capital loss
from unfavorable fluctuations in currency values, from differences
in generally accepted accounting principles, or from economic or
political instability in other nations. Emerging markets
involve heightened risks related to the same factors, as well as
increased volatility and lower trading volume. Securities focusing
on a single country may be subject to higher volatility.
Carefully consider the Funds' investment objectives, risk
factors, charges and expenses before investing. This and additional
information can be found in the Funds' prospectuses, which may be
obtained by calling 1-888-GX-FUND-1 (1.888.493.8631), or by
visiting www.globalxfunds.com. Read the prospectus carefully
before investing.
Global X Management Company, LLC serves as an advisor to the
Global X Funds. The Funds are distributed by SEI Investments
Distribution Co., which is not affiliated with Global X Management
Company or any of its affiliates.
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SOURCE Global X Funds