Global X Funds Announces Reverse Share Splits For Five ETFs

NEW YORK, Nov. 2, 2015 /PRNewswire/ -- Global X Funds, the New York based provider of exchange traded funds (ETFs), announced today that its Board of Trustees has approved reverse share splits for five of its ETFs.  The total market value of the shares outstanding will not be affected as a result of these splits, except with respect to the redemption of fractional shares, as outlined below.

The firm will execute a 1-for-3 reverse split of the shares of the Global X Copper Miners ETF (COPX) and the Global X Silver Miners ETF (SIL), effective at the open of the market on November 18, 2015.  The firm will also execute a 1-for-2 reverse split of the shares of the Global X Gold Explorers ETF (GLDX), Global X Lithium ETF (LIT) and Global X Uranium ETF (URA), effective at the open of the market on November 18, 2015.  

A summary of the five ETFs undergoing reverse splits is as follows (please note the CUSIP changes, effective November 18, 2015):

The reverse splits will raise the share price for each of the Funds and decrease the number of shares outstanding. The total value of shares outstanding is not affected by a split.

Hypothetical example of 1-for-3 reverse split:

Hypothetical example of 1-for-2 reverse split:

Redemption of Fractional Shares and Tax Consequences for Each Reverse Split

As a result of the reverse splits, a shareholder of each ETF could potentially hold a fractional share. However, fractional shares cannot trade on NYSE Arca. Thus, each ETF will redeem for cash a shareholder's fractional shares at the Fund's split-adjusted NAV. Such redemptions could cause a shareholder to realize a gain or loss. Otherwise, the reverse splits will not result in a taxable transaction for holders of ETF shares. No transaction fee will be imposed on shareholders for such redemptions.

"Odd Lot" Unit

As a result of the reverse splits, the ETFs will have outstanding one aggregation of less than 50,000 shares to make a creation unit, or an "odd lot unit." Thus, each ETF will provide one authorized participant with a one-time opportunity to redeem the respective odd lot unit at its split-adjusted NAV, or at the NAV on such date the authorized participant seeks to redeem the odd lot unit.

ABOUT GLOBAL X FUNDS

Global X is a New York-based sponsor of exchange-traded funds (ETFs) and seeks to provide access to high quality and cost efficient investment solutions. Founded in 2008, Global X is recognized for its smart core, income, alpha, risk management and access suites of ETFs. With over 40 funds available across U.S. and foreign exchanges, Global X is one of the fastest growing, most nimble issuers of ETFs.  For more information about these ETFs, please visit www.globalxfunds.com.

DISCLOSURE

Investing involves risk, including the possible loss of principal. International investing may involve risk of capital loss from unfavorable fluctuations in currency values, from differences in generally accepted accounting principles, or from economic or political instability in other nations.  Emerging markets involve heightened risks related to the same factors, as well as increased volatility and lower trading volume. Securities focusing on a single country may be subject to higher volatility.

Carefully consider the Funds' investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Funds' prospectuses, which may be obtained by calling 1-888-GX-FUND-1 (1.888.493.8631), or by visiting www.globalxfunds.com. Read the prospectus carefully before investing.

Global X Management Company, LLC serves as an advisor to the Global X Funds. The Funds are distributed by SEI Investments Distribution Co., which is not affiliated with Global X Management Company or any of its affiliates.

SOURCE Global X Funds

Related Links

http://www.globalxfunds.com