Newton, MA – July 6, 2009 – Direxion, a pioneer in providing alternative investment strategies to sophisticated investors, announced today that it will execute a 1-for-5 reverse split of the shares of the Direxion Daily Financial Bull 3x Shares (FAS) and a 1-for-10 reverse split of the shares of the Direxion Daily Financial Bear 3x Shares (FAZ) after the closing of the markets on Wednesday July 8, 2009. FAS and FAZ shares will begin trading on NYSE Arca, Inc. (NYSE Arca) on a split-adjusted basis on Thursday July 9, 2009.
As a result of the FAS 1-for-5 reverse split, every five shares of FAS will be exchanged for one share. Accordingly, the number of FAS shares will decrease by approximately 80%, and the net asset value (NAV) and price of each share at the opening of the markets on Thursday July 9,2009 will increase 5-fold. The total market value of the FAS shares outstanding will not be affected as a result of this reverse split except with respect to the redemption of fractional shares. Based on yesterday’s closing prices, the reverse splits will raise the per-share cost of FAZ from $5.12/share to $51.20/share and boost the price of FAS from $8.34/share to $41.70/share.” (see the press release HERE)