The AdvisorShares Trust announced that it has received correspondence from Staff of Nasdaq Listing Qualifications advising that the AdvisorShares Sabretooth ETF is not currently in compliance with the requirement to maintain a minimum number of shares outstanding. Listing Rule 5735(d)(1)(A) provides that Nasdaq will establish a minimum number of Managed Fund Shares required to be outstanding at the time of initial listing. Listing Rule 5735(d)(2)(C)(v) provides that this minimum number also must be maintained for continued listing. While the number of shares is not explicitly stated in the rule, Staff believes that 100,000 is the appropriate minimum number because it is consistent with the minimum requirement established in Rule 5705(b)(6)(B) for listing Index Fund Shares and the minimum included in Rule 19b-4 filings required to list Managed Fund Shares that did not satisfy or pre-dated the generic listing requirements.
Due to the fund’s inability to attract sufficient investment assets, AdvisorShares Investments, LLC believes that BKCH cannot conduct business and operations in an economically efficient manner. As a result, the AdvisorShares Board of Trustees approved the closing and subsequent liquidation of BKCH. The fund’s last day of trading will be September 27, 2019, which will also be the final day for creations or redemptions by authorized participants. The fund will cease operations, withdraw its assets, and distribute the remaining proceeds to shareholders on or after October 4, 2019.
For financial professionals and investors requesting more information, visit www.advisorshares.com or call AdvisorShares at 877-843-3831.
Before investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses. This and other information is in the prospectus, a copy of which may be obtained by visiting the Fund’s website at www.AdvisorShares.com. Please read the prospectus carefully before you invest.
The Fund is subject to a number of risks that may affect the value of its shares, including the possible loss of principal. There is no guarantee that the Fund will achieve its investment objective.
Shares are bought and sold at market price (closing price) not net asset value (NAV) and are not individually redeemed from the Fund. Market price returns are based on the midpoint of the bid/ask spread at 4:00 pm Eastern Time (when NAV is normally determined) and do not represent the return you would receive if you traded at other times.