ProShare Capital Management LLC (“PCM”), the sponsor and commodity pool
operator of the funds, has temporarily suspended the ability of
Authorized Participants to purchase new Creation Units in ProShares
Ultra DJ-UBS Commodity (UCD), ProShares UltraShort DJ-UBS Commodity
(CMD), ProShares Ultra DJ-UBS Natural Gas (BOIL), ProShares UltraShort
DJ-UBS Natural Gas (KOLD), ProShares Ultra Australian Dollar (GDAY),
ProShares UltraShort Australian Dollar (CROC), ProShares Ultra Euro
(ULE), ProShares Short Euro (EUFX), ProShares Ultra Yen (YCL), ProShares
Short VIX Short-Term Futures ETF (SVXY) and ProShares VIX Mid-Term
Futures ETF (VIXM), pending the effectiveness of a post-effective
amendment to the funds’ registration statement, as well as approval by
the National Futures Association. The funds will file another Form 8-K
to announce the resumption of the offering of Creation Units, which PCM
expects will occur shortly. The ability of Authorized Participants to
redeem Creation Units is not affected.
During the suspension, the sponsor believes that Authorized Participants
and other groups that make a market in shares of the funds will continue
to actively trade the shares. However, there may be increases in the
spread they quote between offers to buy and sell shares to allow them to
adjust to the potential uncertainty as to when they might be able to
purchase additional Creation Units. In addition, there could be a
significant variation between the market price at which shares are
traded and the shares’ net asset value, which is also the price at which
shares can be redeemed by Authorized Participants in Creation Units. The
potential impact of either wider spreads between bid and offer prices,
or reduced number of shares on which quotes may be available, could
increase trading costs to investors. The sponsor believes that any
potential impact to the market in shares of the funds will not extend
beyond the time when additional shares are available for issuance.
Any forward-looking statements herein are based on expectations of the
sponsor at this time. Whether or not actual results and developments
will conform to the sponsor’s expectations and predictions, however, is
subject to a number of risks and uncertainties, including the special
considerations discussed in the funds’ prospectus, general economic,
market and business conditions, changes in laws or regulations or other
actions made by governmental authorities or regulatory bodies, and other
world economic and political developments. The funds and the sponsor
undertake no duty to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.
About ProShares
Offering the nation's largest lineup of alternative ETFs, ProShares
helps investors to go beyond the limitations of conventional investing
and face today's market challenges. Each ProShares ETF provides access
to an alternative investment strategy delivered with the liquidity,
transparency and cost effectiveness of an ETF. ProShares' lineup of 145
ETFs includes Global Fixed Income, Hedge Strategies, Geared (leveraged
and inverse), and Inflation and Volatility ETFs.
Copyright Business Wire 2014