Registration Statement No. 333-237342
Filed Pursuant to Rule 433
December 1, 2021
NEW YORK, Dec. 1, 2021 /PRNewswire/ - Bank of Montreal (TSX: BMO) (NYSE: BMO) today
announced that it intends to redeem all of the outstanding
securities in each of the series set forth in the following table
(collectively, the "Affected Securities"):
NYSE Arca
Ticker
|
ETN Name and
Prospectus Addendum/Pricing Supplement*
|
CUSIP
|
Call Settlement
Date
|
FNGZ
|
MicroSectors™ FANG+™
Index -2X Leveraged ETNs
|
063679849
|
December 17,
2021
|
GNAF
|
MicroSectors™ FANG+™
Index Inverse ETN
|
063679831
|
December 17,
2021
|
MJJ
|
MicroSectors™
Cannabis ETNs
|
063679682
|
December 27,
2021
|
MJO
|
MicroSectors™
Cannabis 2X Leveraged ETNs
|
063679674
|
December 27,
2021
|
* The table above
provides, for each of the Affected Securities, which are identified
by their names, a hyperlink to the relevant prospectus addendum and
pricing supplement. Hyperlinks to the applicable base
prospectus and prospectus supplement are contained in such
prospectus addendum and pricing supplements.
|
Capitalized terms used but not defined herein shall have the
meanings ascribed to such terms in the relevant pricing supplement
for the Affected Securities.
With respect to each series of Affected Securities, the Call
Settlement Amount payable on the Call Settlement Date will be
calculated as specified in the relevant pricing supplement, as
applicable, for the Affected Securities. BMO will pay the
applicable Call Settlement Amount to investors holding Affected
Securities on the applicable Call Settlement Date.
BMO intends to send a notice of redemption to holders of the
Affected Securities on December 3,
2021. For each series of Affected Securities, the Call
Settlement Amount will equal the arithmetic mean of the closing
Indicative Note Values on each Index Business Day in the related
Call Measurement Period. The Call Measurement Period is
expected to consist of:
- for FNGZ and GNAF, the following five trading days:
December 6, 2021, December 7, 2021, December
8, 2021, December 9, 2021 and
December 10, 2021; and
- for MJJ and MJO, the following ten trading days: December 6, 2021, December
7, 2021, December 8, 2021,
December 9, 2021, December 10, 2021, December 13, 2021, December 14, 2021, December 15, 2021, December 16, 2021 and December 17, 2021
Each series of Affected Securities will be delisted from the
NYSE Arca exchange prior to the open of trading on the Call
Settlement Date.
Holders of the Affected Securities may choose to continue to
hold their securities until the Call Settlement Date, or may choose
to sell or redeem their Affected Securities prior to the applicable
Call Settlement Date, in accordance with the terms of the Affected
Securities. BMO has announced the waiver of the minimum early
redemption size for each of the Affected Securities. Prior to the
waiver, holders of the Affected Securities were required to redeem
at least 25,000 ETNs at one time in order to exercise their right
to redeem them.
None of the other ETNs that BMO has previously issued are
affected by this announcement.
BMO does not intend to issue or register any additional Affected
Securities on or after the date of this press release. BMO and its
affiliates also intend to suspend any further sales from inventory
of the Affected Securities on December 3,
2021. The market value of these securities may be influenced
by, among other things, supply and demand for the Affected
Securities. It is possible that the suspension of any further sales
of the Affected Securities by BMO may influence the market value of
the Affected Securities and the liquidity of the market for the
Affected Securities, potentially leading to insufficient supply,
and causing the Affected Securities to trade at a premium above
their closing or intraday indicative value. Any such premium may
subsequently decrease at any time and for any reason without
warning, resulting in financial loss to investors who paid this
premium when they acquired their Affected Securities.
Investors who purchase the Affected Securities at any time prior
to the Call Settlement Date for an amount that is greater than the
applicable Call Settlement Amount that they will receive on the
Call Settlement Date will suffer a loss on their investment.
Furthermore, investors who sell the Affected Securities at any time
prior to delisting for an amount that is less than the applicable
Call Settlement Amount they would have received on the Call
Settlement Date will also suffer a loss. In either case, such
losses could be significant. Investors will not receive any other
compensation or amount for the loss of the investment opportunity
of holding the Affected Securities.
BMO Financial Group
Serving customers for 200 years and counting, BMO is a highly
diversified financial services provider - the 8th largest bank, by
assets, in North America. With
total assets of $971 billion as of
July 31, 2021, and a team of diverse
and highly engaged employees, BMO provides a broad range of
personal and commercial banking, wealth management and investment
banking products and services to more than 12 million customers and
conducts business through three operating groups: Personal and
Commercial Banking, BMO Wealth Management and BMO Capital
Markets.
Internet: www.bmo.com
Bank of Montreal, the issuer of
the Affected Securities, has filed a registration statement
(including a pricing supplement, prospectus supplement and
prospectus) with the SEC regarding each of the Affected Securities.
Please read those documents and the other documents relating to the
Affected Securities that Bank of Montreal has filed with the SEC for more
complete information about Bank of Montreal and the applicable Affected
Securities. These documents may be obtained without cost by
visiting EDGAR on the SEC website at www.sec.gov. Alternatively,
Bank of Montreal, and any agent or
dealer that participated in the offering of the Affected
Securities, will arrange to send the applicable pricing supplement,
the prospectus supplement and the prospectus if so requested by
calling toll-free at 1-877-369-5412.
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SOURCE BMO Financial Group