Leverage Shares plc has issued a formal notice convening an adjourned securityholder meeting on 20 November 2026 to vote on a proposed consolidation of its Leverage Shares -3x Short Microsoft (MSFT) ETP Securities (ISIN: XS2472334239). The move follows the ETP Security Value falling below 2% of the Principal Amount on 5 October 2026, triggering mandatory meeting obligations under the product's conditions. The original meeting, convened on 4 November 2026, was adjourned owing to a lack of quorum. Investors holding these inverse leveraged exchange-traded product securities should note that a vote on an Extraordinary Resolution is now scheduled, with significant implications for how their holdings are structured.

Key Points

  • Leverage Shares plc (3SMF) — issuer of the -3x Short Microsoft (MSFT) ETP Securities (ISIN: XS2472334239)
  • An adjourned securityholder meeting is scheduled for 20 November 2026 at 10:30am Dublin time to vote on a proposed consolidation of the ETP Securities
  • The ETP Security Value fell below 2% of the Principal Amount on 5 October 2026; the consolidation targets a post-consolidation ETP Security Value of approximately US$30 per security
  • Investors should watch whether the Extraordinary Resolution passes by the required 75% majority of votes cast, and monitor the subsequent notification of the Consolidation Ratio

ETP Security Value Dropped Below 2% Threshold on 5 October 2026, Triggering Mandatory Process

The trigger for the entire process was the ETP Security Value of the Leverage Shares -3x Short Microsoft ETP Securities falling below 2% of the Principal Amount on 5 October 2026, defined under the product conditions as a Threshold Event Date. Condition 8.5(A)(1) of the ETP Securities requires the issuer to convene a securityholder meeting within 30 calendar days of such an event to consider an Extraordinary Resolution. Leverage Shares plc, domiciled in Dublin, Ireland, and acting as issuer, confirmed it has elected not to exercise its discretion to suspend redemptions under Condition 8.5(A)(2), meaning securityholders have retained the ability to redeem during this period.

Proposed Consolidation Targets Approximately US$30 Per ETP Security to Improve Secondary Market Liquidity

The proposed consolidation would reduce the number of ETP Securities held by each securityholder in exchange for a proportionately higher value per security, with the target ETP Security Value set at approximately US$30. The Consolidation Ratio, calculated as the Target ETP Security Value divided by the ETP Security Value on a specified Valuation Date, will be rounded down to the nearest full integer. Any fractional entitlements arising from the consolidation will be redeemed by the issuer. Leverage Shares states the consolidation is reasonably expected to improve liquidity for secondary market investors, though it will reduce the aggregate total value of the Principal Amount and Principal Protection Amount across the series.

Two Known Holders Representing 2,000 ETP Securities Have Indicated Support for the Extraordinary Resolution

The announcement states that Leverage Shares plc is aware of two holders of ETP Securities, together holding 2,000 ETP Securities of the relevant series, who have indicated their intention to vote in favour of the Proposal. The issuer notes that if no other securityholders choose to vote, the Proposal is anticipated to be approved. To pass, the Extraordinary Resolution requires a majority of at least 75% of the votes cast at the Adjourned Meeting. Voting instructions must be received by the Registrar no later than 10:30am Dublin time on 18 November 2026, and securityholders are advised to check earlier deadlines that may apply through their custodian or nominee institution.

Trustee Apex Corporate Trustees (UK) Limited Expresses No Opinion on the Merits of the Proposal

Apex Corporate Trustees (UK) Limited, acting as trustee under the master trust deed originally dated 5 December 2017 and most recently amended on 17 July 2024, has confirmed it was not involved in formulating or negotiating the Proposal. The announcement states that the Trustee expresses no opinion on the merits of the Extraordinary Resolution and makes no recommendation as to how securityholders should vote. The Trustee has authorised the notice to be issued and states it has no objection to the Extraordinary Resolution being submitted for consideration. Securityholders are advised in the announcement to seek their own independent professional advice before casting their vote.