Global X Funds to enact reverse share split for Global X MSCI Nigeria ETF

The board of trustees of exchange traded fund (ETF) provider Global X Funds has approved a 1:4 reverse share split for the Global X MSCI Nigeria ETF (NGE).

NGE is the only ETF focused exclusively on the Nigerian market. The total market value of the shares outstanding will not be affected as a result of this split.
The firm will execute a 1-for-4 reverse split of the shares effective at the open of the market on 16 March 2017.
The reverse split will raise the price of the shares for the fund and decrease the number of shares outstanding, without affecting the total value of the shares outstanding.
As a result of the reverse split, a shareholder of the ETF could potentially hold a fractional share. However, fractional shares cannot trade on NYSE Arca. Thus, each ETF will redeem for cash a shareholders' fractional shares at the fund's split-adjusted NAV. Such redemptions could cause a shareholder to realise a gain or loss. Otherwise, the reverse splits will not result in a taxable transaction for holders of ETF shares.
Global X Management Company does not impose a transaction fee on shareholders for such redemptions.

Author Profile