Plans Announced to Meet Listing Standards for Two Funds
BETHESDA, Md., March 24, 2015 /PRNewswire/ -- The AdvisorShares Trust today announced that it has received correspondence from staff of NYSE Regulation, Inc. concerning non-compliance in two funds.
The staff of NYSE Regulation advised the Trust that shares of the AdvisorShares Sage Core Reserves ETF currently are not in compliance with NYSE Arca's continued listing standards with respect to the number of record or beneficial shareholders. Therefore, NYSE Arca has added a "below compliance" (.BC) indicator to the fund's ticker symbol. The Trust intends to maintain the listing of the fund's shares on the NYSE Arca and bring the fund into compliance with the exchange's continued listing standards. In accordance with NYSE Arca procedures, the Trust plans to submit a written response containing data indicating that the fund is compliant or its plan to re-gain compliance. The Trust intends to submit such a response in a timely manner. If the NYSE Regulation staff accepts the Trust's plan to re-gain compliance, they will indicate the terms and duration of the allowable "cure period." In order to re-gain compliance during any "cure period," the Trust will be required to demonstrate that the fund has at least 50 record or beneficial holders over a period of two consecutive months.
NYSE Regulation recently advised the Trust that shares of the AdvisorShares Sage Core Reserves ETF currently are not in compliance with NYSE Arca's continued listing standards with respect to the fund's NYSE Arca Form 19b-4, concerning the fund's ability to invest a certain percentage of its net assets in privately-issued (non-government-sponsored entity (GSE)) mortgage-related securities. NYSE Arca will add a "below compliance" (.BC) indicator to the fund's ticker symbol.
NYSE Regulation has also advised the Trust that shares of the AdvisorShares WCM/BNY Mellon Focused Growth ADR ETF are not in compliance with NYSE Arca's continued listing standards concerning the fund's NYSE Arca Form 19b-4, which states that "under normal circumstances, 80% of the fund will be invested in American Depositary Receipts ("ADRs")." Based on the fund's recent disclosed portfolio, the fund was found to hold less than 80% in ADRs with the balance invested in other US-listed common stock of foreign corporations. Therefore, NYSE Arca will add a "below compliance" (.BC) indicator to the fund's ticker symbol.
The Trust has requested minor rule-filing amendments that will bring each fund into compliance. Each amendment is accordant with previously approved rule-filings for other listed funds, and it is expected these amendments will be approved. The Trust will submit a written response describing the actions to resolve each fund's non-compliance, as well as a description of the circumstances that caused each fund to fall out of compliance.
To request more information on AdvisorShares, please contact Ryan Graham at 202-684-6442 or [email protected]. For financial professionals and investors requesting more information, please visit www.advisorshares.com or call the AdvisorShares Investment Consultant Team at 1-877-THE-ETF1 (1-877-843-3831).
Before investing you should carefully consider the Fund's investment objectives, risks, charges and expenses. This and other information is in the prospectus, a copy of which may be obtained by visiting the Fund's website at www.AdvisorShares.com. Please read the prospectus carefully before you invest.
Foreside Fund Services, LLC, distributor.
An investment in ETFs is subject to risk, including the possible loss of principal amount invested. The risks associated with each Fund include the risks associated with the underlying ETFs, which can result in higher volatility, and are detailed in each Fund's prospectus and on each Fund's webpage. The Funds may not be suitable for all investors.
Contact: Ryan Graham
AdvisorShares
202-684-6442
[email protected]
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