NEW YORK - March 15, 2024 - Direxion, a leading provider of tradeable and thematic ETFs, has announced it will execute a reverse split of the issued and outstanding shares of the Direxion Daily Semiconductor Bear 3X Shares (Ticker: SOXS) (the "Fund"). The total market value of the shares outstanding will not be affected as a result of this split, except with respect to the redemption of fractional shares, as outlined below.
After the close of the markets on April 12, 2024, the Fund will effect a reverse split of its issued and outstanding shares as follows:
Fund Name / Reverse Split Ratio / Approximate decrease in total number of outstanding shares
Direxion Daily Semiconductor Bear 3X Shares / 1 for 10 / 90%
Please note the CUSIP change, effective April 15, 2024:
Fund Name / Ticker / Current CUSIP / New CUSIP
Direxion Daily Semiconductor Bear 3X Shares / SOXS / 25460G336 / 25460G112
As a result of this reverse split, every ten shares of the Fund will be exchanged for one share as indicated in the table above. Accordingly, the total number of the issued and outstanding shares for the Fund will decrease by the approximate percentage indicated above. In addition, the per share net asset value ("NAV") and next day's opening market price will be approximately ten-times higher for the Fund. Shares of the Fund will begin trading on the NYSE Arca, Inc. (the "NYSE Arca") on a split-adjusted basis on April 15, 2024.
The next day's opening market value of the Fund's issued and outstanding shares, and thus a shareholder's investment value, will not be affected by the reverse split. The table below illustrates the effect of a hypothetical one-for-ten reverse split anticipated for the Fund:
1-for-10 Reverse Split
Period / # of Shares Owned / Hypothetical NV / Total Market Value
Pre-Split / 1000 / $1 / $1,000
Post-Split / 10 / $10 / $1,000
Redemption of Fractional Shares and Tax Consequences of the Reverse Split
As a result of the reverse split, a shareholder of the Fund's shares potentially could hold a fractional share. However, fractional shares cannot trade on the NYSE Arca. Thus, the Fund will redeem for cash a shareholder's fractional shares at the Fund's split-adjusted NAV as of the Record Date. Such redemption may have tax implications for those shareholders and a shareholder could recognize a gain or loss in connection with the redemption of the shareholder's fractional shares. Otherwise, the reverse split will not result in a taxable transaction for holders of Fund shares. No transaction fee will be imposed on shareholders for such redemption.
"Odd Lot" Unit
Also, as a result of the reverse split, the Fund may have outstanding one aggregation of less than 50,000 shares to make a creation unit, or an "odd lot unit." Thus, the Fund will provide one authorized participant with a one-time opportunity to redeem the odd lot unit at the split-adjusted NAV or the NAV on such date the authorized participant seeks to redeem the odd lot unit.
The Direxion Shares ETF Trust's transfer agent will notify the Depository Trust Company ("DTC") of the reverse split and instruct DTC to adjust each shareholder's investment(s) accordingly. DTC is the registered owner of the Fund's shares and maintains a record of the Fund's record owners.
All Direxion leveraged and inverse ETFs are intended only for investors with an in-depth understanding of the risks associated with seeking leveraged investment results, and who plan to actively monitor and manage their positions. There is no guarantee these ETFs will meet their objective. Please visit the Direxion Leveraged and Inverse ETF Education Center, where you will find educational brochures, videos, and a self-paced online course to help you understand if leveraged ETFs are right for you.
About Direxion
Direxion equips investors who are driven by conviction with ETF solutions built for purpose and fine-tuned for precision. These solutions are available for a broad spectrum of investors, whether executing short-term tactical trades, or investing in thematic strategies. Direxion's reputation is founded on developing products that precisely express market perspectives and allow investors to manage their risk exposure. Founded in 1997, the company has approximately $38.1 billion in assets under management as of December 31, 2023. For more information, please visit www.direxion.com.
After the close of the markets on April 12, 2024, the Fund will effect a reverse split of its issued and outstanding shares as follows:
Fund Name / Reverse Split Ratio / Approximate decrease in total number of outstanding shares
Direxion Daily Semiconductor Bear 3X Shares / 1 for 10 / 90%
Please note the CUSIP change, effective April 15, 2024:
Fund Name / Ticker / Current CUSIP / New CUSIP
Direxion Daily Semiconductor Bear 3X Shares / SOXS / 25460G336 / 25460G112
As a result of this reverse split, every ten shares of the Fund will be exchanged for one share as indicated in the table above. Accordingly, the total number of the issued and outstanding shares for the Fund will decrease by the approximate percentage indicated above. In addition, the per share net asset value ("NAV") and next day's opening market price will be approximately ten-times higher for the Fund. Shares of the Fund will begin trading on the NYSE Arca, Inc. (the "NYSE Arca") on a split-adjusted basis on April 15, 2024.
The next day's opening market value of the Fund's issued and outstanding shares, and thus a shareholder's investment value, will not be affected by the reverse split. The table below illustrates the effect of a hypothetical one-for-ten reverse split anticipated for the Fund:
1-for-10 Reverse Split
Period / # of Shares Owned / Hypothetical NV / Total Market Value
Pre-Split / 1000 / $1 / $1,000
Post-Split / 10 / $10 / $1,000
Redemption of Fractional Shares and Tax Consequences of the Reverse Split
As a result of the reverse split, a shareholder of the Fund's shares potentially could hold a fractional share. However, fractional shares cannot trade on the NYSE Arca. Thus, the Fund will redeem for cash a shareholder's fractional shares at the Fund's split-adjusted NAV as of the Record Date. Such redemption may have tax implications for those shareholders and a shareholder could recognize a gain or loss in connection with the redemption of the shareholder's fractional shares. Otherwise, the reverse split will not result in a taxable transaction for holders of Fund shares. No transaction fee will be imposed on shareholders for such redemption.
"Odd Lot" Unit
Also, as a result of the reverse split, the Fund may have outstanding one aggregation of less than 50,000 shares to make a creation unit, or an "odd lot unit." Thus, the Fund will provide one authorized participant with a one-time opportunity to redeem the odd lot unit at the split-adjusted NAV or the NAV on such date the authorized participant seeks to redeem the odd lot unit.
The Direxion Shares ETF Trust's transfer agent will notify the Depository Trust Company ("DTC") of the reverse split and instruct DTC to adjust each shareholder's investment(s) accordingly. DTC is the registered owner of the Fund's shares and maintains a record of the Fund's record owners.
All Direxion leveraged and inverse ETFs are intended only for investors with an in-depth understanding of the risks associated with seeking leveraged investment results, and who plan to actively monitor and manage their positions. There is no guarantee these ETFs will meet their objective. Please visit the Direxion Leveraged and Inverse ETF Education Center, where you will find educational brochures, videos, and a self-paced online course to help you understand if leveraged ETFs are right for you.
About Direxion
Direxion equips investors who are driven by conviction with ETF solutions built for purpose and fine-tuned for precision. These solutions are available for a broad spectrum of investors, whether executing short-term tactical trades, or investing in thematic strategies. Direxion's reputation is founded on developing products that precisely express market perspectives and allow investors to manage their risk exposure. Founded in 1997, the company has approximately $38.1 billion in assets under management as of December 31, 2023. For more information, please visit www.direxion.com.
