AdvisorShares Announces Reverse Split of ETF

BETHESDA, MD — January 22, 2021  — AdvisorShares, a leading sponsor of actively managed exchange-traded funds (ETFs), has announced a reverse split of the issued and outstanding shares of the AdvisorShares Ranger Equity Bear ETF. The split will not change the total value of a shareholder’s investment.

After the close of the markets on February 5, 2021, the Fund will affect a reverse split of its issued and outstanding shares as follows:

Please note the CUSIP changes, effective February 8, 2021:

As a result of this reverse split, every ten shares of the Fund will be exchanged for one share as indicated above. Accordingly, the total number of the issued and outstanding shares for the Fund will decrease by the approximate percentage indicated above. In addition, the per share net asset value (NAV) and next day’s opening market price will be approximately ten times higher for the Fund. Shares of the Fund will begin trading on the NYSE Arca on a split-adjusted basis on February 8, 2021.

A shareholder’s investment value will not be affected by the reverse split. The table below illustrates the effect of a hypothetical one-for-ten reverse split anticipated for the Fund, as applicable and described above:

1-for-10 Reverse Split

The Trust’s transfer agent will notify the Depository Trust Company (DTC) of the reverse split and instruct DTC to adjust each shareholder’s investment(s) accordingly. DTC is the registered owner of the Fund’s shares and maintains a record of the Fund’s record owners.

Redemption of Fractional Shares and Tax Consequences for the Reverse Split

As a result of the reverse split, a shareholder of the Fund’s shares potentially could hold a fractional share. However, fractional shares cannot trade on the NYSE Arca. Thus, the Fund will redeem for cash a shareholder’s fractional shares at the Fund’s split-adjusted NAV as of the Record Date. A shareholder could recognize a gain or loss in connection with the redemption of the shareholder’s fractional shares.

“Odd Lot” Unit

As a result of the reverse split, the Fund may have outstanding one aggregation of less than 50,000 shares to make a creation unit, or an “odd lot unit.” Thus, the Fund will provide one authorized participant with a one-time opportunity to redeem the odd lot unit after the split-adjusted NAV is struck on February 8, 2021.

 About AdvisorShares

AdvisorShares is a leading provider of actively managed ETFs. For financial professionals and investors requesting more information, call 1-877-843-3831 or visit www.advisorshares.com. Follow @AdvisorShares on Twitter and Facebook for more insights.