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Plan Announced to Meet Listing Rules

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Plan Announced to Meet Listing Rules

PR Newswire

BETHESDA, Md., July 27, 2018 /PRNewswire/ -- The AdvisorShares Trust announced that it has received correspondence from Staff of Nasdaq Listing Qualifications advising that the AdvisorShares Dorsey Wright Short ETF is not currently in compliance with the requirement to maintain a minimum number of shares outstanding. Listing Rule 5735(d)(1)(A) provides that Nasdaq will establish a minimum number of Managed Fund Shares required to be outstanding at the time of initial listing. Listing Rule 5735(d)(2)(C)(v) provides that this minimum number also must be maintained for continued listing. While the number of shares is not explicitly stated in the rule, Staff believes that 100,000 is the appropriate minimum number because it is consistent with the minimum requirement established in Rule 5705(b)(6)(B) for listing Index Fund Shares and the minimum included in Rule 19b-4 filings required to list Managed Fund Shares that did not satisfy or pre-dated the generic listing requirements.

AdvisorShares logo. (PRNewsFoto/AdvisorShares)

The Trust intends to maintain the listing of the Fund's shares on the Nasdaq Global Market and bring the Fund into compliance with the exchange's rules. In accordance with Nasdaq Listing Qualifications, the Trust plans to submit a written response containing data indicating that the fund is compliant or its plan to re-gain compliance. The Trust intends to submit such a response in a timely manner.

For financial professionals and investors requesting more information, please visit www.advisorshares.com or call the AdvisorShares Investment Consultant Team at 1-877-THE-ETF1 (1-877-843-3831).

Before investing you should carefully consider the Fund's investment objectives, risks, charges and expenses. This and other information is in the prospectus, a copy of which may be obtained by visiting the Fund's website at www.AdvisorShares.com. Please read the prospectus carefully before you invest.

Foreside Fund Services, LLC, distributor.

The Fund is subject to a number of risks that may affect the value of its shares, including the possible loss of principal. Short sales are transactions in which the Fund sells a security it does not own. To complete the transaction, the Fund must borrow the security to make delivery to the buyer. The Fund is then obligated to replace the security borrowed by purchasing the security at the market price at the time of replacement. If the underlying security goes down in price between the time the Fund sells the security and buys it back, the Fund will realize a gain on the transaction. Conversely, if the underlying security goes up in price during the period, the Fund will realize a loss on the transaction. Any such loss is increased by the amount of premium or interest the Fund must pay to the lender of the security. Likewise, any gain will be decreased by the amount of premium or interest the Fund must pay to the lender of the security. Because a short position loses value as the security's price increases, the loss on a short sale is theoretically unlimited. Short sales involve leverage because the Fund borrows securities and then sells them, effectively leveraging its assets. The use of leverage may magnify gains or losses for the Fund. As with any fund, there is no guarantee that the Fund will achieve its investment objective.

Shares are bought and sold at market price (closing price) not net asset value (NAV) and are not individually redeemed from the Fund. Market price returns are based on the midpoint of the bid/ask spread at 4:00 pm Eastern Time (when NAV is normally determined) and do not represent the return you would receive if you traded at other times.

 

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SOURCE AdvisorShares

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