Investor FAQ: Expiration of Litecoin & XRP Certificates
What is happening?
Our Litecoin Tracker One (ISIN: SE0011414465), Litecoin Tracker Euro (ISIN: SE0011414457), XRP Tracker One (ISIN: SE0011414481) & XRP Tracker Euro (ISIN: SE0011414473) products are fixed-term Certificates with scheduled maturity dates, and they are expiring soon.
What do I need to do?
You have a choice of either selling the Certificate or holding the Certificate. The information in this FAQ is provided to assist you in making that choice given their differing consequences. For instance, Certificate Holders who sell their Certificates prior to the last trading day will receive payment for their Certificates quicker than Certificates which are automatically redeemed.
When is the last trading day?
The last trading day will be Monday, 29 March 2021. Hence, Certificate holders wishing to sell their Certificates in the secondary market will only be allowed to do so before 17:30 CET (Nordic Growth Market’s market close) on Monday, 29 March 2021.
When will the products expire?
The expiration date of the products is set for Friday, 9 April 2021, which is the date at which any outstanding Certificates will expire and investors will receive cash equal to the relevant Settlement Amount, as calculated on Wednesday, 31 March 2021 (the ‘Final Fixing Date’), at 16:25 UK time.
Will you renew existing Certificates?
No. Under the terms of the Certificates, it is not possible to renew or extend them or otherwise replace the expiration and automatic redemption. The products will expire on the maturity dates.
What will happen if I choose to keep my Certificates?
Outstanding Certificates will be automatically redeemed on the expiry date (i.e. Friday, 9 April 2021) and a cash amount equal to the Settlement Amount will be funded to each holder’s account via their brokers and the Euroclear Sweden system.
What price will my Certificates be redeemed at?
On the expiry date, the Issuer shall redeem each Certificate for a cash amount equal to the Settlement Amount. The settlement amount is defined as the original purchase price plus or minus any price movements in the underlying crypto currency less the relevant fee, as determined by the Calculation Agent on the Final Fixing Date. The Final Fixing Date is set for Wednesday, 31 March 2021. The Final Fixing Date is defined in the Final Terms of each product.
How will you calculate the Settlement Amount?
We would like to reassure investors that the final prices for all products will be calculated in the normal transparent way, as per the methodology set out in the Prospectus. More information on the Settlement Amount can be found in the Prospectus (Condition 5, page 55 in the Swedish prospectus/ page 63 in the English prospectus)
The Issuer will publish the Settlement Amount, as soon as it receives it, on its website here.
How will I receive my funds? Can I receive digital currency?
Funds will be settled via Euroclear Sweden, which will distribute the funds onto Certificate Holders via their brokers. The Issuer will only distribute cash in Euro or Swedish Kroner. No digital currency or tokens will be distributed upon expiration.
The Holders of the Certificates will receive the funds in the currency the product they hold is denominated in:
- Holders of Litecoin Tracker One and XRP Tracker One will receive SEK.
- Holders of Litecoin Tracker Euro and XRP Tracker Euro will receive EUR.
When will I receive my funds?
Payments will only be made to Certificate Holders who are named in the register when the product closes on the Final Fixing Date (Wednesday, 31 March 2021). We expect to make payments to all Registered Holders (i.e. the. large nominees and custodian accounts that hold on behalf of individual holders) as follows:
If you hold the Certificates through a broker or other nominee, it may take longer for the payment to find its way to your account. Please contact your bank or broker for information on how they will pass on the payments to you and how long they expect it to take.
It is also possible that your broker or bank may charge fees. We would recommend speaking with them in advance regarding expected timelines and potential fees.
Can I have my Certificates redeemed earlier?
Holders do not have the right to redeem directly with the Issuer but they may continue to sell Certificates in the secondary market via their bank or broker in the usual way until the last trading day, Monday, 29 March 2021.