ProShares will reverse share split eight of its ETFs Monday June 10th. The reverse splits will not change the value of a shareholder’s investment. In the reverse split, each of the identified outstanding shares (4, 5, 10 shares) of the respective Fund will be will be exchanged for one new share of the Fund.
Open orders in the above Funds at the close of business on Friday, June 7, 2013 will be canceled. The new shares of the Fund will be admitted to trading at the opening of business on Monday, June 10, 2013. On the effective date, the Funds will have a new CUSIP as indicated above. The fund names, symbols and underlying indices will not be changed.
Funds will reverse split shares at the following split ratios:
|Ticker||Fund||Split Ratio||Old CUSIP||New CUSIP|
|KOLD||ProShares UltraShort DJ-UBS Natural Gas||1:4||74347W767||74347W387|
|VIXY||ProShares VIX Short-Term Futures ETF||1:5||74347W692||74347W361|
|UVXY||ProShares Ultra VIX Short-Term Futures ETF||1:10||74347W411||74347W379|
|DUG||ProShares UltraShort Oil & Gas||1:4||74347X591||74348A525|
|FINZ||ProShares UltraPro Short Financials||1:4||74348A574||74348A517|
|TTT||ProShares UltraPro Short 20+ Year Treasury||1:4||74347X740||74348A491|
|SJF||ProShares UltraShort Russell1000 Value||1:4||74347R453||74348A483|
|EFU||ProShares UltraShort MSCI EAFE||1:4||74347R339||74348A475|
All reverse splits will be effective at the market open on June 10, 2013, when the funds will begin trading at their post-split price. The ticker symbol for the funds will not change. All funds undergoing a reverse split will be issued a new CUSIP number.
The reverse splits will increase the price per share of each fund with a proportionate decrease in the number of shares outstanding. For example, for a 1-for-4 reverse split, every four pre-split shares will result in the receipt of one post-split share, which will be priced four times higher than the 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 4 for a 1-to-4 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 4 reverse split:
|Period||# of Shares Owned||Hypothetical NAV||Value of Shares|
ProShares Trust II (NYSEARCA:KOLD), ProShares UltraShort Oil & Gas (ETF) (NYSEARCA:DUG), ProShares Trust (NYSEARCA:FINZ), ProShares Trust (NYSEARCA:TTT), ProShares UltraShort Rusell1000 Vlu(ETF) (NYSEARCA:SJF), ProShares UltraShort MSCI EAFE (ETF) (NYSEARCA:EFU), ProShares Trust II (NYSEARCA:VIXY), ProShares Trust II (NYSEARCA:UVXY)