CHICAGO, April 03, 2018 (GLOBE NEWSWIRE) -- Elkhorn ETFs today announced changes to its suite of ETFs. The previously announced merger transaction between Elkhorn Investments, LLC (“Elkhorn Investments”), the investment adviser to the Elkhorn ETFs, and Veracen Investments Holdings LP (“Veracen”), in which Veracan would acquire Elkhorn Investments, has not closed as of March 31, 2018. The Board of Trustees (the “Board”) of Elkhorn ETF Trust (the “Trust”) did not renew the investment advisory contracts with Elkhorn Investments which expired on that date, and took the following actions:
With regard to the Elkhorn Lunt Low Vol/High Beta Tactical ETF and Elkhorn S&P High Quality Preferred ETF, the Board unanimously approved an interim investment advisory agreement between Innovator Capital Management LLC (“Innovator”) and the Trust with terms substantially identical to the existing investment advisory agreement with Elkhorn Investments whereby Innovator will replace Elkhorn Investments as the investment adviser to the Elkhorn Lunt Low Vol/High Beta Tactical ETF and Elkhorn S&P High Quality Preferred ETF and an interim investment sub-advisory agreement between Penserra Capital Management LLC (“Penserra”), Innovator and the Trust, whereby Penserra will manage each fund’s assets under the supervision of Innovator and the Board, each effective as of April 1, 2018. For more information on Innovator, visit www.innovatoretfs.com.
With regard to the Elkhorn Commodity Rotation Strategy ETF and Elkhorn Fundamental Commodity Strategy ETF, the Board voted to terminate and liquidate both funds (each a “Liquidating Fund,” and collectively, the “Liquidating Funds”). After the close of business on April 13, 2018, subject to applicable law, the Liquidating Funds will no longer accept creation orders. Trading in the Liquidating Funds will be halted prior to market open on April 16, 2018. Proceeds of the liquidation are currently scheduled to be sent to shareholders on or about April 18, 2018.
When each Liquidating Fund commences liquidation of its portfolio, the Liquidating Fund may hold cash and securities that may not be consistent with the Liquidating Fund’s investment objective and strategy. During this period, each Liquidating Fund is likely to incur higher tracking error than is typical for the Liquidating Fund.
Shareholders may sell their holdings of the Liquidating Funds on their respective exchange until trading halts and may incur typical transaction fees from their broker-dealer. At the time the liquidation of the Liquidating Funds is complete, shares of the Liquidating Funds will be individually redeemed. If you still hold shares as of the liquidation, each Liquidating Fund will automatically redeem your shares for cash at the current net asset value. Shareholders generally recognize a capital gain or loss on the redemptions. The Liquidating Funds may or may not, depending upon each Liquidating Fund’s circumstances, pay one or more dividends or other distributions prior to or along with the redemption payments. Please consult your personal tax advisor about the potential tax consequences. For additional information about the liquidation, shareholders of the Liquidating Funds may call (630) 384-8700.
Media Contact:
Ben Fulton, (630) 384-8714 or bfulton@elkhorn.com
Phil Ziesemer, (630) 384-8707 or pziesemer@elkhorn.com
Carefully consider each fund’s investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in each funds’ statutory and summary prospectus, which may be obtained by calling (630) 384-8700 or by visiting Elkhorn.com. Read the prospectus carefully before investing.
Foreside Fund Services, LLC is the distributor of Elkhorn exchange-traded funds.
There are risks involved with investing in ETFs, including possible loss of money. Shares are not actively managed and are subject to risks similar to those of stocks, including those regarding short selling and margin maintenance requirements. Ordinary brokerage commissions apply. One cannot invest directly into an index.