MJO, a 2x leveraged ETN, and MJJ, an
unleveraged ETN, seek to provide targeted exposure to the North
American cannabis industry
NEW YORK, Dec. 11, 2019 /PRNewswire/ - REX Shares, LLC
(REX) today added to its MicroSectors™ lineup with the launch of
MJO, the first leveraged exchange-traded product in the U.S. linked
to the cannabis industry. MJO, an Exchange-Traded Note (ETN), is
linked to MSMJ, the Indxx MicroSectors™ North American Cannabis
Index, and will seek to provide 2x leveraged exposure to the
Index.
In addition, REX announced the launch of MJJ, a 1x version of
the Exchange Traded Notes linked to the Index. The MicroSectors
Cannabis 2x Leveraged ETN (symbol: MJO) and MicroSectors Cannabis
Index ETN (symbol: MJJ) started trading today on NYSE Arca. The
ETNs are senior, unsecured obligations issued by the Bank of
Montreal.
The Index provides a quarterly IPO review for new issuances
and a quarterly review for stocks facing potential regulatory
bars to engaging in the cannabis industry. The Index selects
U.S. and Canadian constituents from five key sub-themes:
Cultivator, Pharmaceuticals, Testing & Analytics, Industrial
Hemp, and Ancillary. Companies are screened as either pure play or
quasi play depending on the percentage of revenue that is derived
from Cannabis.
REX sees large demand for ETNs in this sector. "We created the
MicroSectors lineup to innovate the ETP landscape and launch 'first
of' products like this first 2x Cannabis ETN in the United States," said Scott Acheychek, President of REX. "The Bank of
Montreal has been a great partner
and we enjoyed working with Indxx for the first time on this index.
We are all thrilled to launch these ETNs. They represent a
tremendous step forward for cannabis stock investing and trading,
and we believe they are providing many U.S. investors with the
targeted North American cannabis industry exposure they're looking
for."
As the first leveraged exchange-traded cannabis product
available in the U.S., MJO opens up new trading possibilities for
sophisticated investors. "We're particularly excited about
providing U.S. tactical investors with daily 2x leveraged exposure
to the cannabis industry," Acheychek continued. "We think it will
serve as a valuable additional tool in investors' trading
toolkits."
Disclosures
Investment suitability must be determined individually for each
investor, and the ETNs may not be suitable for all investors. This
information is not intended to provide and should not be relied
upon as providing accounting, legal, regulatory or tax
advice. Investors should consult with their own financial
advisors as to these matters. Investors should read the
applicable offering documents described below, and in particular,
the risk factors set forth therein, prior to making an investment
decision.
The 2x ETNs are intended to be daily trading tools for
sophisticated investors to manage daily trading risks as part of an
overall diversified portfolio. They are designed to achieve their
stated investment objectives on a daily basis, as described in the
applicable pricing supplement.
Bank of Montreal, the issuer of
the ETNs, has filed a registration statement (including certain
pricing supplements, product supplements, a prospectus supplement
and a prospectus) with the Securities and Exchange Commission (the
"SEC") about each of the offerings to which this press release
relates. Please read those documents and the other documents
relating to these offerings that Bank of Montreal has filed with the SEC for more
complete information about Bank of Montreal and these offerings. These documents
may be obtained without cost by visiting EDGAR on the SEC website
at www.sec.gov. Alternatively, Bank of Montreal, any agent or any dealer
participating in these offerings will arrange to send the
applicable pricing supplement, product supplement, prospectus
supplement and prospectus if so requested by calling toll-free
at 1-877-369-5412.
About REX
REX launched the MicroSectors™ brand in 2018 with FANG+ linked
ETNs, and has expanded to include U.S. Big Banks, U.S. Big Oil
& Dorsey Wright MLP Index linked ETNs. For more information,
please visit www.microsectors.com
Follow us on Twitter @msectors
About BMO Financial Group
Serving customers for 200 years and counting, BMO is a highly
diversified financial services provider - the 8th largest bank, by
assets, in North America. With total assets of $852
billion as of October 31, 2019, and a team of diverse and
highly engaged employees, BMO provides a broad range of personal
and commercial banking, wealth management and investment banking
products and services to more than 12 million customers and
conducts business through three operating groups: Personal and
Commercial Banking, BMO Wealth Management and BMO Capital
Markets.
RELATED LINKS
https://www.rexshares.com/
www.bmo.com
Indxx, LLC ("Indxx") is the licensor of the Index. The
ETNs are not sponsored, endorsed, promoted or sold by Indxx in any
way, and Indxx makes no express or implied representation,
guarantee or assurance with regard to: (a) the advisability in
investing in the ETNs; (b) the quality, accuracy and/or
completeness of the Index; and/or (c) the results obtained or to be
obtained by any person or entity from the use of the Index. Indxx
does not guarantee the accuracy and/or the completeness of the
Index and shall not have any liability for any errors or omissions
with respect thereto. Notwithstanding Indxx's obligations to its
licensees, Indxx reserves the right to change the methods of
calculation or publication of the Index, and Indxx shall not be
liable for any miscalculation of or any incorrect, delayed or
interrupted publication with respect to the Index. Indxx shall not
be liable for any damages, including, without limitation, any loss
of profits or business, or any special, incidental, punitive,
indirect or consequential damages suffered or incurred as a result
of the use (or inability to use) of the Index.
MicroSectors™ and REX™ are registered trademarks of REX.
The trademarks have been licensed for use for certain purposes by
Bank of Montreal. The ETNs are not sponsored, endorsed, sold
or promoted by REX or any of its affiliates or third-party
licensors (collectively, "REX Index Parties"). REX Index
Parties make no representation or warranty, express or implied, to
the owners of the ETNs or any member of the public regarding the
advisability of investing in securities generally or in the ETNs
particularly or the ability of the Index to track general market
performance. REX Index Parties' only relationship to Bank of
Montreal with respect to the Index
is the licensing of the Index and certain trademarks, service marks
and/or trade names of REX Index Parties. REX Index Parties
are not responsible for and have not participated in the
determination of the prices, and amount of the ETNs or the timing
of the issuance or sale of the ETNs or in the determination or
calculation of the equation by which the ETNs are to be converted
into cash. REX Index Parties have no obligation or liability in
connection with the administration, marketing or trading of the
ETNs. Inclusion of a security within an index is not a
recommendation by REX Index Parties to buy, sell, or hold such
security, nor is it considered to be investment advice.
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SOURCE BMO Financial Group