Reminder: Direxion to Execute Reverse Share Splits of Six Leveraged ETFs

NEW YORK, Sept. 29, 2015 /PRNewswire/ -- Direxion will execute the previously announced reverse share splits for six of its leveraged exchange-traded funds ("ETFs"). The total market value of the shares outstanding will not be affected as a result of these splits, except with respect to the redemption of fractional shares, as outlined in the original announcement.

Direxion will execute reverse splits of the issued and outstanding shares of the Direxion Daily Gold Miners Index Bull 3X Shares (NUGT), Direxion Daily Natural Gas Related Bull 3X Shares (GASL), Direxion Daily Junior Gold Miners Index Bull 3X Shares (JNUG), Direxion Daily Junior Gold Miners Index Bear 3X Shares (JDST), Direxion Daily Financial Bear 3X Shares (FAZ) and the Direxion Daily Small Cap Bear 3X Shares (TZA), effective at the open of the market on October 1, 2015.

In addition, the per-share net asset value ("NAV") and next day's opening market price will be approximately 10, five or four times higher for the Funds. Shares of the Funds will begin trading on NYSE Arca, Inc. ("NYSE Arca") on a split-adjusted basis on October 1, 2015.

A summary of the six ETFs undergoing reverse splits is as follows (please note the CUSIP changes, effective October 1, 2015):

Accordingly, the total number of the issued and outstanding shares for the Funds will decrease by the approximate percentages indicated above. 

The opening market value of the Funds' issued and outstanding shares on October 1, 2015, and thus a shareholder's investment value, will not be affected by the reverse split. The tables below illustrate the effect of a hypothetical 1-for-10, 1-for-5, and 1-for-4 reverse split anticipated for the Funds, as applicable and described above:

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

Redemption of Fractional Shares and Tax Consequences for the Reverse Split
As a result of the reverse splits, a shareholder of a Fund's shares potentially could hold a fractional share. However, fractional shares cannot trade on the NYSE Arca. Thus, a Fund will redeem for cash a shareholder's fractional shares at the Fund's split-adjusted NAV as of the Record Date. Such redemptions may have tax implications for those shareholders and a shareholder could recognize a gain or loss in connection with the redemption of the shareholder's fractional shares. Otherwise, the reverse split will not result in a taxable transaction for holders of Fund shares. No transaction fee will be imposed on shareholders for such redemptions.

"Odd Lot" Unit
Also as a result of the reverse splits, the Funds will have outstanding one aggregation of less than 50,000 shares to make a creation unit, or an "odd lot unit." Thus, the Funds will provide one authorized participant with a one-time opportunity to redeem the odd lot unit at the split-adjusted NAV or the NAV on such date the authorized participant seeks to redeem the odd lot unit.

About Direxion
Direxion builds bold products for investors who want more than the status quo. Our index-based products deliver directional options, magnified exposure, and long-term rules-based strategies. Founded in 1997, the company has approximately $9.4 billion in assets under management as of June 30, 2015. Direxion's diverse suite of products helps investors navigate today's ever-changing markets. For more information, please visit www.direxioninvestments.com.  

There is no guarantee that the funds will achieve their objectives.

For more information on all Direxion Shares daily leveraged ETFs, go to direxioninvestments.com, or call us at 866-476-7523.

The ETFs are not suitable for all investors and should be utilized only by investors who understand the risks associated with seeking daily leveraged investment results, and intend to actively monitor and manage their investments. Due to the daily nature of the leverage employed, there is no guarantee of amplified long-term returns. Past performance is not indicative of future results.

An investor should consider the investment objectives, risks, charges, and expenses of Direxion ETFs carefully before investing. The prospectus and summary prospectus contains this and other information about Direxion ETFs. Download a prospectus and summary prospectus at direxioninvestments.com. The prospectus and summary prospectus should be read carefully before investing.

Risks:
An investment in the ETFs involves risk, including the possible loss of principal. The ETFs are non-diversified and include risks associated with concentration risk that results from the Funds' investments in a particular industry or sector which can increase volatility. The use of derivatives such as futures contracts, forward contracts, options and swaps are subject to market risks that may cause their price to fluctuate over time. The Fund does not attempt to, and should not be expected to; provide returns which are a multiple of the return of the Index for periods other than a single day. For other risks including leverage, correlation, compounding, market volatility and specific risks regarding each sector, please read the prospectus.

Distributor: Foreside Fund Services, LLC.

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SOURCE Direxion