RiverNorth Enhanced Pre-Merger SPAC ETF
RiverNorth Enhanced Pre-Merger SPAC ETF (SPCZ) is an actively managed fund that invests in pre-merger securities of special purpose acquisition companies, or SPACs, whose business plan is to raise capital in an Initial Public Offering (IPO) and, within a specific period of time, engage in a merger or acquisition with one or more unidentified companies. SPCZ seeks to derive value by investing in units, common stock and warrants/rights of U.S.-listed SPACs. The Fund's objective is to achieve positive absolute returns while controlling for risk.
- Actively managed ETF
- Invests exclusively in pre-merger SPACs
- Seeks to exit the investment no later than the de-spacing process by selling the shares on the secondary market or by tendering the shares
- Potential optionality to the upside from holding warrants/rights
- Utilizes leverage opportunistically based on valuations
Before investing, investors should consider the Fund's investment objectives, risks, charges, and expenses. The prospectus, or summary prospectus,
containing this and other information may be obtained by visiting www.true-shares.com and should be read carefully prior to investing. Foreside Fund
Services, LLC, distributor.
The Fund may not achieve its objective and/or you could lose money on your investment in the Fund. The Fund is recently organized with no operating history for
prospective investors to base their investment decision which may increase risks. Some of the Fund's key risks, include but are not limited to the following risks.
Please see the Fund's prospectus for further information on these and other risk considerations.
ETF Risks. As an ETF, the Fund is exposed to the additional risks, including: (1) concentration risk associated with Authorized Participants, market makers, and
liquidity providers; (2) costs risks associated with the frequent buying or selling of Fund shares; (3) market prices may differ than the Fund's net asset value; and
(4) liquidity risk due to a potential lack of trading volume.
The RiverNorth Enhanced Pre-Merger SPAC ETF is also subject to the following risks:
New Fund Risk. The Fund is a recently organized investment company with no operating history. As a result, prospective investors have no track record or history
on which to base their investment decision.
Leverage Risk. The use of leverage is speculative could magnify the Fund's gains or losses and increase risk. This is the speculative factor known as leverage.
Borrowing also may cause the Fund to liquidate positions under adverse market conditions to satisfy its repayment obligations. Borrowing increases the risk of loss
and may increase the volatility of the Fund.
Pre-Combination (Pre-Merger) SPAC Risk. The Fund invests in equity securities and warrants of SPACs. Pre-combination SPACs have no operating history or
ongoing business other than seeking Combinations, and the value of their securities is particularly dependent on the ability of the entity's management to identify
and complete a profitable Combination. There is no guarantee that the SPACs in which the Fund invests will complete a Combination or that any Combination that
is completed will be profitable. Unless and until a Combination is completed, a SPAC generally invests its assets in U.S. government securities, money market
securities, and cash. Public stockholders of SPACs may not be afforded a meaningful opportunity to vote on a proposed initial Combination because certain
stockholders, including stockholders affiliated with the management of the SPAC, may have sufficient voting power, and a financial incentive, to approve such a
transaction without support from public stockholders.
Some SPACs may pursue Combinations only within certain industries or regions, which may increase the volatility of their prices. In addition, the Fund may invest
in vehicles formed by SPAC sponsors to hold founder shares, which may be subject to forfeiture or expire worthless and which generally have more limited liquidity
than SPAC shares issued in an IPO. In addition, the Fund may invest in vehicles formed by SPAC sponsors to hold founder shares, which may be subject to
forfeiture or expire worthless and which generally have more limited liquidity than SPAC shares issued in an IPO.
Foreign Securities Risk. Foreign SPACs Investments in SPACs domiciled or listed outside of the U.S. may involve risks not generally associated with
investments in the securities of U.S. SPACs, such as risks relating to political, social, and economic developments abroad and differences between U.S. and
foreign regulatory requirements and market practices. Further, tax treatment may differ from U.S. SPACs and securities may be subject to foreign withholding
Small-Cap Risk. SPACs will have a more limited pool of companies with which they can pursue a business combination relative to larger capitalization
companies. That may make it more difficult for a small capitalization SPAC to consummate a business combination.
Liquidity refers to the efficiency or ease with which an asset or security can be converted into ready cash without affecting its market price.
NOT FDIC INSURED — NO BANK GUARANTEE — MAY LOSE VALUE