NEWTOWN SQUARE, PA — Empowered Funds LLC amended the liquidation schedule for two Sophus Capital exchange-traded funds, setting October termination dates that will end trading and return remaining assets to shareholders.
The Sophus Capital Emerging Market ETF (NASDAQ: EMEM) is scheduled to liquidate on or about Oct. 14. Trading on Nasdaq will cease after the regular session closes Oct. 13, when the fund will also stop accepting creation and redemption orders.
The Sophus Capital Emerging Market Small Cap ETF (NASDAQ: EMSC) is scheduled to liquidate on or about Oct. 28. It will cease trading and close to purchases after regular trading Oct. 27, with creation and redemption orders ending the same day.
Shareholders can sell holdings before the applicable liquidation date, subject to customary brokerage charges. Empowered Funds cautioned that investors may be limited to selling through certain broker-dealers and that a market for the shares is not assured during the wind-down period.
As the funds prepare for liquidation, some or all of their portfolios may no longer be invested consistently with their stated objectives and strategies. Cash holdings may also increase.
Following each liquidation date, the applicable fund will distribute cash on a pro rata basis to shareholders of record, subject to required withholding. The funds will terminate after distributions are completed.
Liquidation proceeds generally are expected to be treated as payments received in exchange for shares, creating a taxable event that may result in a capital gain or loss depending on an investor’s tax basis. Payments may also include distributions of accrued capital gains and dividends.
Each fund’s net asset value on its liquidation date will reflect any costs associated with closing the fund.
Empowered Funds, which does business as ETF Architect, serves as investment adviser to the funds. Sophus Capital LLC is the sponsor under an agreement with ETF Architect, while Consilium Investment Management LLC, doing business as Sophus Capital, serves as sub-adviser. PINE Distributors LLC distributes the funds.
Additional fund and prospectus information is available at https://sophus-capital-etfs.com.
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