Leverage Shares Securityholders Approve Consolidation of -3x Short Apple ETP at Dublin Meeting

Overview of Leverage Shares' Inverse Apple ETP and Consolidation Vote

Leverage Shares plc issues exchange-traded products offering leveraged and inverse exposure to various assets. Its Leverage Shares -3x Short Apple (AAPL) ETP Securities, identified by ISIN XS2472334742, provide triple inverse daily returns relative to Apple Inc. shares. This product targets investors aiming to benefit from declines in Apple’s share price or hedge long positions in the tech sector.

The adjourned securityholder meeting took place on 21 July 2026 at 2nd Floor, Block 5, Irish Life Centre, Abbey Street Lower, Dublin 1, Ireland. At this meeting, securityholders voted to approve the consolidation proposal. The passing of the Extraordinary Resolution signifies a pivotal step in the product’s structural development. Consolidations typically involve merging multiple securities or modifying trust arrangements to enhance operational efficiency or respond to market changes. The resolution’s passage confirms strong securityholder support.

Details of the Extraordinary Resolution Approved by Securityholders

The Extraordinary Resolution includes eight key provisions establishing the legal basis for the consolidation. It authorizes Apex Corporate Trustees (UK) Limited, the trustee, to agree to the consolidation and execute the Consolidation Supplemental Trust Deed. It also permits all necessary modifications, compromises, waivers, and arrangements affecting ETP Securityholders’ rights arising from the consolidation.

The resolution waives formalities prescribed by the Trust Deed, ETP Securities, and Conditions related to the proposal and its implementation. Securityholders grant broad powers to the Trustee and Issuer to execute all deeds, instruments, and actions deemed necessary to implement the consolidation. Additionally, the resolution releases the Trustee and Issuer from liability for acts or omissions connected to the consolidation, except in cases of fraud, gross negligence, or willful default by the Trustee.

Protections for Trustee and Securityholder Waivers in the Resolution

The resolution contains extensive protections for Apex Corporate Trustees (UK) Limited. Securityholders irrevocably waive claims against the Trustee for actions taken in good faith related to the consolidation and the Consolidation Supplemental Trust Deed. This waiver significantly limits potential claims against the Trustee, underscoring the binding nature of the consolidation.

Moreover, securityholders agree to indemnify the Trustee against costs, losses, or liabilities incurred in connection with implementing the consolidation, excluding those arising from the Trustee’s fraud, gross negligence, or willful default. This indemnity places financial responsibility for implementation on the securityholder base collectively, providing the Trustee with recourse for reasonable expenses related to executing the consolidation.

Legal Framework: Trust Deed Amendments and Documentation History

The consolidation is supported by a series of trust deeds and supplemental instruments forming the product’s legal framework. The master trust deed, dated 5 December 2017 and last amended on 17 July 2024, along with a supplemental trust deed dated 7 June 2022, govern the ETP Securities. These documents define the relationships among Leverage Shares plc as Issuer, Apex Corporate Trustees (UK) Limited as Trustee, and the ETP Securityholders.

The Consolidation Supplemental Trust Deed, authorized by the resolution, amends this existing trust structure. Securityholders’ approval confirms their consent to the consolidation and grants the necessary powers to implement it. Capitalized terms such as "Consolidation," "Proposal," "Consolidation Supplemental Trust Deed," and "ETP Securities" are defined in the Notice of Adjourned Meeting or the Trust Deed itself, reflecting standard documentation hierarchies for complex exchange-traded products.

Authority Granted to Trustee and Issuer for Implementation

The Extraordinary Resolution grants the Trustee and Issuer extensive authority to implement the consolidation. They are empowered to concur with the proposal, execute the Consolidation Supplemental Trust Deed, and perform all deeds, acts, or instruments necessary or appropriate to give effect to the resolution and consolidation.

This broad authority allows the Trustee and Issuer to address unforeseen procedural or documentation requirements without repeatedly consulting securityholders. It reflects securityholders’ confidence in these parties to execute the consolidation consistent with the resolution’s intent. The announcement confirms this authority is now in effect, enabling the Trustee and Issuer to proceed with full legal backing.

Meeting Details and Dublin Venue for Securityholder Approval

The adjourned meeting approving the Extraordinary Resolution was held on 21 July 2026 at 11:00 am Dublin time at 2nd Floor, Block 5, Irish Life Centre, Abbey Street Lower, Dublin 1, Ireland. Holding the meeting in Dublin aligns with Leverage Shares plc’s Ireland-based regulatory and administrative framework. Although Apex Corporate Trustees (UK) Limited is UK-based, the Trust Deed incorporates both UK and Irish regulatory considerations.

The meeting’s status as an "adjourned meeting" indicates a prior meeting was postponed to allow further discussion or resolution of procedural matters before voting. The formal notice of the meeting’s outcome was issued by Leverage Shares plc’s Directors on the same day, ensuring timely transparency for securityholders.

Market Context for Inverse Apple ETPs and Leveraged Product Consolidations

Inverse and leveraged exchange-traded products have become integral to global markets, enabling investors to hedge or express bearish views without short-selling physical securities. Leverage Shares’ -3x Short Apple product offers triple inverse daily exposure to Apple Inc., a major technology stock. Such products suit experienced traders seeking tactical short-term positions or hedges due to their amplified risks.

Consolidations of leveraged and inverse ETPs commonly aim to streamline operations, adapt to regulatory changes, reduce costs, or reflect changes in securityholder composition. The consolidation of Leverage Shares’ -3x Short Apple product aligns with industry trends of restructuring complex securities to maintain operational efficiency and compliance. The securityholders’ approval indicates an engaged investor base supporting the product’s structural evolution. For investors, the consolidation may enhance operational efficiency or better align the product with current market and regulatory conditions.

Scope of Securityholder Rights Modifications

The Extraordinary Resolution authorizes all necessary abrogations, modifications, variations, compromises, waivers, and arrangements affecting securityholder rights related to the consolidation. This broad language permits adjustments to rights under the Trust Deed and ETP Securities that are required to implement the consolidation.

However, these modifications are limited to those "necessary or appropriate to carry out and give effect to the Proposal." This restricts the Trustee’s and Issuer’s ability to make unrelated changes. The announcement does not specify particular rights modifications, preserving flexibility to address issues arising during implementation. Securityholders have thus consented to broad but purpose-driven changes in exchange for the consolidation’s operational benefits.

Regulatory and Administrative Structure Governing the ETP

The Leverage Shares -3x Short Apple ETP Securities operate under a comprehensive legal framework comprising the master trust deed, supplemental trust deeds, and ETP Conditions. This framework defines the rights and obligations of the Issuer, Trustee, and Securityholders, including procedures for meetings, Extraordinary Resolutions, and amendments. The passing of the Extraordinary Resolution on 21 July 2026 complied fully with these procedures.

Securityholders also waived formalities required by the Trust Deed and related documents in connection with the consolidation. This waiver facilitates efficient implementation by removing procedural hurdles. Together with indemnities granted to the Trustee, this legal structure enables swift consolidation while protecting the Trustee from liability related to implementation. It ensures the consolidation proceeds with clear legal authority and appropriate risk allocation.

Next Steps Following Securityholder Approval

The approval of the Extraordinary Resolution completes the securityholder consent phase of the consolidation. The Trustee and Issuer are now authorized to execute the Consolidation Supplemental Trust Deed and undertake all necessary actions to implement the consolidation. The announcement does not specify a timeline or milestones for completion.

Investors holding Leverage Shares -3x Short Apple ETP Securities should monitor updates from Leverage Shares plc and their financial advisors for details on implementation timing, trading changes, or modifications to product terms. The consolidation may impact operational features such as cost structure, index methodology, or administrative processes. Securityholders are encouraged to review future notices from the Issuer or Trustee outlining the consolidation’s practical effects. The Extraordinary Resolution’s passage provides the legal foundation for advancing these steps.