DUBLIN - WisdomTree Multi Asset Issuer Public Limited Company, an Ireland-based issuer of exchange-traded products (ETPs), has called for a meeting of securityholders to vote on a proposed amendment to the principal amount of its NASDAQ 100® 3x Daily Short Securities (ISIN: IE00BLRPRJ20). The meeting is scheduled to take place on January 6, 2025, at the offices of Apex IFS Limited in Dublin.
The proposed amendment follows a significant drop in the price of the affected securities, which fell below 500% of their current principal amount on December 6, 2024. This event has prompted the issuer to consider a reduction in the principal amount from USD 1.218 to USD 0.1218 to maintain normal trading and operations and to prevent a compulsory redemption event.
Should the price fall below 200% of the principal amount 60 days after the initial threshold event and the vote for the amendment does not pass, a compulsory redemption event will be triggered, requiring the issuer to redeem all affected securities.
The issuer has assured holders that the reduction in the principal amount will not dilute their holdings, reduce the value of their holdings, negatively impact their ability to trade the affected securities, or affect the amount received upon redemption. The price of the securities is calculated by reference to the underlying index, not the principal amount.
Securityholders are advised to consult with their financial intermediaries to ensure they understand the deadlines for submitting instructions to participate in the meeting. The outcome of the meeting will be communicated to the securityholders shortly thereafter.
This proposed amendment is a response to market conditions affecting the securities in question and is part of the issuer's efforts to manage the ETP effectively. The information is based on a press release statement from WisdomTree Multi Asset Issuer Public Limited Company.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.