Simplify Announces 1-For-20 Reverse Split For Simplify Tail Risk Strategy ETF
Portfolio Pulse from Benzinga Newsdesk
Simplify Asset Management Inc. has announced a 1-for-20 reverse split for the Simplify Tail Risk Strategy ETF, effective after market close on February 9, 2024. Trading on a split-adjusted basis will begin on February 12, 2024. The reverse split will reduce the number of shares and increase the NAV and market price per share by 20 times, without changing the total value of shareholders' investments. Fractional shares resulting from the split will be redeemed for cash, which may have tax implications. The reverse split will not be a taxable event for shareholders, and no transaction fee will be imposed for the redemption of fractional shares. Authorized participants may have odd-lot shares due to the split, with a one-time redemption opportunity.
January 22, 2024 | 8:59 pm
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The Simplify Tail Risk Strategy ETF (CYA) will undergo a 1-for-20 reverse split, reducing the number of shares and increasing the NAV and market price per share. Fractional shares will be redeemed for cash, which could have tax implications for shareholders.
The reverse split is a neutral event as it does not fundamentally alter the value of the ETF, but it does affect the number of shares and share price. Fractional shares will be redeemed for cash, which could have minor tax implications for shareholders. The confidence level is high due to the clear details provided by the company, but not 100% as market reaction to reverse splits can vary.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100