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BMO Implements a 1-for-20 Reverse Split for Gold Miners ETNs

On October 9, 2025, the Bank of Montreal (BMO) declared its plan to enact a reverse split for its MicroSectors™ Gold Miners -3X Inverse Leveraged Exchange-Traded Notes (ETNs), identified by the ticker symbol GDXD. This strategic move involves a 1-for-20 reverse split, which is set to take effect on October 22, 2025.

Understanding the Reverse Split

In financial markets, a reverse split is often undertaken to boost the trading value of a company's stocks or notes, usually when they have dropped significantly. In this instance, BMO's reverse split will mean that for every 20 ETNs held, investors will now own one reverse-split adjusted ETN. Consequently, while the quantity of the ETNs in circulation will reduce, the overall investment value remains unchanged, minus any cash payments for fractional ETNs not evenly divisible by twenty.

The reverse split is intended to maintain investor interest and ensure the ETNs continue to meet market standards for trading on NYSE Arca. Following the reverse split adjustment, shareholders will receive a cash payment for any fractional remaining, with the amount dependent on the closing Indicative Note Value on October 27, 2025.

Table Summary of the Reverse Split

Implications for Investors

Investors who currently hold the ETNs before the Effective Date will see their holdings adjusted according to the reverse split ratio. For example, an investor with 100,000 ETNs valued hypothetically at $5.00 each will see their holdings adjust to 5,000 ETNs valued at $100 each post-split, effectively keeping their total investment value at $500,000 before any potential cash payments for fractional shares.

It's crucial to note that these ETNs are not designed for long-term holding and serve more as daily trading instruments for experienced investors aiming to manage daily trading risks within a diversified portfolio. Therefore, investors need to stay vigilant, continuously monitoring their investments and setting up strategies reflecting the leveraged nature of these ETNs.

Moreover, BMO emphasizes that the performance of the ETNs will likely diverge from an equivalent short investment in the underlying index over various periods due to leveraged exposure, thus demanding careful contemplation before any investment decision.

About BMO and Their ETNs

BMO Financial Group stands as a significant player in North America's banking landscape, providing a broad spectrum of personal and commercial banking services. With a commitment to fostering positive economic changes, BMO continues to innovate in financial products, assisting investors in navigating turbulent market conditions.

For further insights, the ETN Prospectus, detailing risks and the nature of the offering, is available for investors intending to evaluate their potential investment thoroughly.

In Summary: BMO’s reverse split indicates a proactive approach to maintain the performance stature of its MicroSectors Gold Miners ETNs within the financial market, while simultaneously considering investors' interests amidst changing market scenarios.