Leverage Shares to Consolidate -3x Short Apple ETP Securities with New ISIN XS3420365036 Effective 29 July 2026

Overview of Leverage Shares and the -3x Short Apple ETP Securities

Leverage Shares plc is a regulated issuer of exchange-traded products structured as collateralised securities under a master definitions schedule dated 17 July 2024. Through its programme, it issues complex investment products, including the -3x Short Apple (AAPL) ETP Securities involved in this consolidation. This product offers inverse leveraged exposure to Apple Inc. shares, targeting a movement three times opposite to Apple’s stock price. It is primarily used by sophisticated investors for hedging or speculating on declines in Apple’s equity.

Previously listed under ISIN XS2472334742, the -3x Short Apple ETP Securities traded on multiple exchanges and were available in USD, GBP, and EUR. The collateralised structure enhances transparency and reduces counterparty risk. This consolidation reflects the issuer’s active management strategy, implementing corporate actions such as consolidations to optimize product structure and investor utility.

Details of the 183-to-1 Consolidation Ratio and Process

The announced consolidation applies a 183-to-1 ratio, whereby every 183 existing ETP Securities will be exchanged for one consolidated security. This significant ratio indicates prior price or unit value erosion, typical in leveraged inverse products due to daily rebalancing effects causing value drift over time.

Consolidation will be automatic for all holders recorded by market close on 28 July 2026, executed via a Consolidation Supplemental Trust Deed amending the original trust deed. Fractional entitlements will be redeemed for cash on 28 July 2026 to avoid fractional securities, ensuring investors receive whole units or cash equivalents, consistent with market standards.

Introduction of New ISIN XS3420365036 and Multiple SEDOL Codes

Post-consolidation, the securities will trade under the new ISIN XS3420365036 starting 29 July 2026, replacing the old ISIN XS2472334742. This change follows regulatory requirements triggered by the material alteration of the security’s terms. Investors should update their trading and portfolio systems accordingly to prevent settlement issues.

Multiple new SEDOLs have been assigned to support trading across different currencies and exchanges: BVSV4Z4 for USD (ticker AAPS LN), BVSV506 for GBp (3SAA LN), BVSV517 for EUR (SALE LN), and BVSV528 for EUR (3SAA GY). This multi-currency, multi-exchange setup facilitates global investor access and local currency trading. Custodians will update records automatically, but investors should verify their holdings under the new identifiers.

Trading Suspensions and Order Restrictions During Consolidation

To implement the consolidation, Leverage Shares will suspend subscription orders on 27 and 28 July 2026, and redemption orders on 24, 27, and 28 July 2026. The old ISIN will cease trading on 28 July, with the new ISIN commencing on 29 July 2026.

Despite order suspensions, secondary market trading among investors will continue uninterrupted on listed exchanges, allowing buying and selling between parties. Direct dealings with the issuer via subscription or redemption will be unavailable during this period. Investors wishing to avoid consolidation must sell their holdings before the 28 July record date.

Investor Guidance and Timeline for Portfolio Adjustments

The consolidation is automatic for all holders on record as of 28 July 2026. Investors should confirm with brokers or custodians that their holdings will be consolidated correctly and that portfolio systems will reflect the new ISIN and SEDOL codes. Institutional and automated trading users may need to manually update systems. Sellers or transferees of holdings should notify counterparties to ensure consolidation responsibilities are clear.

The consolidated securities will begin trading on 29 July 2026, with new identifiers appearing in investor accounts around that date. For questions, investors can contact Leverage Shares at [email protected]. Due to the complexity and risks involved, professional financial advice is recommended.

Implications of Consolidation on Product Lifecycle and Performance

The substantial 183-to-1 consolidation reflects challenges in preserving unit value in leveraged inverse ETPs over time. Due to daily rebalancing and compounding effects, such products often deviate from their target multiples, especially if the underlying asset trends upward, leading to value erosion.

This consolidation resets the unit structure to maintain liquidity and market efficiency. While it does not alter the product’s leverage or strategy, it addresses structural issues common in leveraged inverse products and may improve secondary market pricing and trading volumes.

Post-Consolidation Trading, Liquidity, and Market Accessibility

The ISIN change may temporarily fragment liquidity as market participants update systems. The one-day gap between old ISIN cessation and new ISIN commencement on 28–29 July 2026 requires investors to plan exits accordingly. The availability of multiple currency variants and exchanges, including London Stock Exchange listings, enhances accessibility and reduces foreign exchange complications, potentially increasing trading volumes.

Investors should choose the appropriate SEDOL and ticker based on their preferred trading venue and currency to ensure smooth execution and settlement.

Regulatory Framework and Trust Deed Governing the Consolidation

The consolidation is governed by a Consolidation Supplemental Trust Deed amending the original trust deed under the Amended and Restated Master Definitions Schedule dated 17 July 2024. This ensures compliance with agreed terms between Leverage Shares and securityholders, providing legal certainty post-consolidation.

Securityholder approval was obtained via the Notice of Adjourned Meeting dated 6 July 2026, reflecting robust governance and ensuring no unilateral issuer action. This regulatory framework is critical for managing complex leveraged and inverse exchange-traded securities.

Risks and Considerations for Holders of Leveraged Inverse Products

Investors should recognize that the -3x Short Apple ETP Securities’ daily rebalancing means long-term returns will not equal -3 times Apple’s stock return. Volatility and compounding can cause amplified losses, especially in rising markets. The consolidation does not mitigate these inherent risks.

These products are generally intended for short-term tactical use rather than long-term holdings. The large consolidation ratio highlights the need for investors to reassess alignment with investment goals. Additionally, the ISIN and SEDOL changes may temporarily disrupt portfolio tracking, so verifying holdings post-consolidation is essential. Leveraged inverse products carry elevated risk and are unsuitable for all investors or time horizons.