Reality Shares ETF Trust decided to liquidate and close the:
Reality Shares Nasdaq NexGen Economy China ETF (BCNA) and
Reality Shares Fundstrat DQM Long ETF (DQML),
based on the recommendation of Reality Shares Advisors, LLC, the Funds’ investment advisor.
BCNA will cease trading on the Nasdaq Stock Market, DQML will cease trading on the NYSE Arca, Inc., and the Funds will be closed to purchase by investors as of the close of regular trading on the Nasdaq and NYSE on October 22, 2019 (Closing Date). The Funds will not accept purchase orders after the Closing Date.
Shareholders may sell their holdings in the Funds prior to the Closing Date, and customary brokerage charges may apply to these transactions. This process will result in a Fund increasing its cash holdings and, as a consequence, not tracking its underlying index, which is inconsistent with each Fund’s investment objective and strategy.
On or about the Liquidation Date, each Fund will liquidate its assets and distribute cash pro rata to all remaining shareholders. From October 22, 2019, through October 29, 2019 (Liquidation Date), shareholders may only be able to sell their shares to certain broker-dealers and there is no assurance that there will be a market for a Fund’s shares during this time period. Between the Closing Date and the Liquidation Date, each Fund will be in the process of closing down and shareholders who have not previously redeemed or exchanged their shares. These distributions are taxable events. In addition, these payments to shareholders will include accrued capital gains and dividends, if any. As calculated on the Liquidation Date, each Fund’s net asset value will reflect the costs of closing the Fund. Once the distributions are complete, the Funds will terminate.