hi! I have some money in this stock, and now it says PENDING DELISTING. Cant sell them, anyone have any idea whats going on and what should I do?
Hi. The simple answer is that I don’t know and I am sure others more knowledgeable than me will answer. However, I did a quick google and the Leverage Shares website has a document which says (and the list of products includes several 2x products so I wonder whether they are just streamlining their products) - if you go to the website and look under notices its the latest notice 2x Salesforce.com (CRM) Long ETP | Leverage Shares ETPs
"In accordance with Condition 8.6 of the Terms and Conditions of the ETP Securities of the
Relevant Series, the Issuer hereby gives notice of redemption of all the outstanding ETP
Securities of the Relevant Series effective on 21st April 2023 (the “Mandatory Redemption
Date”). The ETPs of the Relevant Series will be redeemed at the Mandatory Redemption
The Relevant Series will continue trading on the exchanges on which they are listed until close
of trading on 19th April 2023.
The Issuer will advise ETP Securityholders of the Mandatory Redemption Amount and the
Mandatory Redemption Settlement Date as soon as reasonably practicable. "
We are still waiting for Leverage Shares to liquidate the instruments in question. Once that happens - we’ll reflect the changes on our end as well. I’ll attach an article from our Help Centre, where you can find further details on what happens if an instrument in your portfolio gets delisted.
Check it out
As stated in the official notice - these ETPs are being redeemed (terminated).
- Last Trading Date: 19 April 2023
- Termination Date: 21 April 2023
- Delisting Date: 24 April 2023
- Settlement Date: 25 April 2023 (or as soon as commercially feasible)
Investors that have not sold on exchange will have their ETPs redeemed at a price based on the value of the ETPs (NAV) on 21 April 2023, less applicable costs, fees and expenses (the “Redemption Amount”).
The Redemption Amount will be published on 24 April 2023 and paid by 25 April 2023 or as soon as commercially feasible.
Just a reminder that there is no action needed from investors’ side.
i thought these things get delisted if say price movement of 33.33% in a trading day or something.
Looks like they they are delisting for other reasons. Can anyone offer any insight?
Probably its business reasons, such as, some ETP didn’t get sufficient traction (e.g. AUM), and ETP issuer decided to streamline their offerings. If so, it’s quite normal, companies end their product offerings when they don’t meet their expectations.
Hey, yeah @RLX is right. These didn’t get much traction in terms of AUM and trading volumes, and market makers would have issues pricing many of these before US markets opened, which sometimes led to wide spreads.
I’m not sure but I think that they are delisting several 2x products so maybe if people want to use leverage products they just go for the 3x product and the 2x were simply not popular
Quick update: We are starting to liquidate some of the ETPs. All clients will receive a platform notification + email.
Let me know if you have any questions.
I currently have 101,000 shares in 3SHP ticker (Leverage Shares 3x Shopify ETP) with a value of £656.50.
The app shows that it is “Pending delisting” and does not allow me to sell it.
Would anyone know:
- Will I ever be able to monetise these shares?
- Any timelines when this may happen?
I think I have found others in the similar situation and we will soon be credited for these shares Leverage shares Salesforce PENDING DELISTING
You beat me to it.
That’s right. We’ve started liquidating some of the ETPs. You’ll soon receive an in-app notification + email with more info
By the way, do you mind if I merge the two topics so the information can be concentrated in one place?
Of course. Go for it. Thank you.
We just liquidated Leverage Shares 3x Shopify ETP (3SHP, SHO3 & 3SHE).
Do check on your end - you should have received an in-app notification.
What is the best way to be infront of these type of actions in future cases as I had a shock in my system with this email today as Shopify as a company is in a good position going forward is there a way to get news about delistings before they happen ? As I had no initial warning such as emai or anything like that
The only announcement there is is the one from the product provider, when they announce they are delisting the instrument.
Buying into a leveraged product , or any ETP, has nothing to do with the health of the underlying (well, at least not when it comes to delisting, exception of the twitter deal).
You are not holding shares of the company, but units of a separate product (the ETP), which replicates performance from the underlying. The product itself has its own market, secluded from the underlying’s market.
These products are absolutely tiny, with very little activity, and so they face increased risks of being delisted if deemed unworth to the issuer; you also face greater execution risks.
Thank you this was great information!
Do you know the criteria they look at before delaitings and what goes into making there decisions ?
No, I do not.
Lack of interest is probably the best guess, but I think LS had a post a couple days ago where they also mentioned spread issue due to the difficulties of providing an accurate pricing when the US market would be closed.
Caught me by surprise too. Sign up to RNS on the market that lists the shares, in this case LSE, so add stocks to your portfolio or watchlist by signing up there & allowing for email news notifications. Alternatively always check for news of your stocks on the relevant exchanges.