SoFi Announces Reverse Stock Split for SoFi Select 500 ETF (SFY)
NEW YORK, Sept. 20, 2024 (GLOBE NEWSWIRE) -- The Board of Trustees of Tidal ETF Trust (the “Trust”) has approved a reverse stock split of the issued and outstanding shares of the SoFi Select 500 ETF (NYSE Arca: SFY) (the “Fund”). The reverse split will take effect after the close of trading on the NYSE Arca, Inc. (the “Exchange”) on October 1, 2024.
Following the reverse stock split, every five shares of the Fund will be consolidated into one share, effectively decreasing the total number of issued and outstanding shares by approximately 80%. The per-share net asset value (NAV) and the opening market price will increase proportionally by five times on the following trading day.
Details of the Reverse Stock Split:
- Reverse Split Ratio: 1:5
- Approximate Decrease in Total Outstanding Shares: 80%
Additionally, the Fund’s CUSIP number will change as follows, effective after the close of the market on the Effective Date:
| Old CUSIP | New CUSIP |
| 886364207 | 886364173 |
Impact on Shareholders
The reverse stock split will not alter the overall value of a shareholder’s investment. The value of an investor’s holdings in the Fund remains unchanged, even though the number of shares will decrease, and the per-share price will increase:
Shares of the Fund will begin trading on a split-adjusted basis on the Exchange on October 2, 2024.
Redemption of Fractional Shares and Tax Implications
In cases where shareholders hold fractional shares following the reverse split, the Fund will redeem those fractional shares for cash at the Fund’s split-adjusted NAV on the Effective Date. This redemption could result in tax consequences, with shareholders potentially recognizing gains or losses based on the redemption of fractional shares. However, apart from this, the reverse split will not be a taxable event for shareholders, and no transaction fees will be charged for the redemption of fractional shares.
About Tidal Financial Group
Formed by ETF industry pioneers and thought leaders, Tidal Financial Group set out to revolutionize the way ETFs have historically been developed, launched, managed, marketed, and sold. With a focus on growing AUM, Tidal offers a comprehensive suite of services, proprietary tools, and methodologies designed to bring clients ideas to market. Tidal is an advocate for ETF innovation and is on a mission to provide issuers with the intelligence and tools needed to effectively launch ETFs and optimize growth potential in a highly competitive space. As of September 1, 2024, Tidal managed 172 funds with over $19 billion in AUM.
For more information, visit Tidal Financial Group.
About SoFi
SoFi's mission is to empower individuals to achieve financial independence and fulfill their ambitions. Financial independence isn’t just about being wealthy; it’s about having your money work for the life you want to live. Everything SoFi does is focused on helping people take control of their finances. SoFi is always innovating and creating solutions that provide the tools and resources needed for them to reach their goals.
Before investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses. This and other information is in the prospectus. A prospectus may be obtained by visiting www.sofi.com. Please read the prospectus carefully before you invest.
Investing involves risk including loss of principal. Please visit each fund’s page for specific fund risks.
SoFi ETFs are distributed by Foreside Fund Services, LLC.
Contact: pr@sofi.com
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