Leverage Shares plc - Termination of AP Agreement

Leverage Shares plc ends an unused AP agreement with no impact on ETP holders.

What the company is saying

Leverage Shares plc formally announces the mutual termination of its amended and restated authorised participant agreement with GWM Limited, originally dated 18 December 2020. The company states that GWM Limited was never actually appointed as an authorised participant for any Series of its collateralised exchange traded securities, as no confirmation of appointment was executed under Clause 2.1 of the agreement. The termination becomes effective from and including 2 November 2026. The company explicitly asserts that this action does not affect any ETP Securityholders and is not materially prejudicial to their interests. The notice is addressed to holders of all Series of ETP Securities listed in the attached Schedule 1, which includes a comprehensive list of products by name and ISIN. The tone is procedural and neutral, focusing on legal clarity and administrative housekeeping rather than operational or financial change.

What the data suggests

The agreement between Leverage Shares plc and GWM Limited was established on 18 December 2020 but never activated for any ETP Series. No confirmation of appointment was ever completed, meaning GWM Limited did not function as an authorised participant at any point. The termination is scheduled to take effect on 2 November 2026, just three days after the notice date of 30 October 2026. The company provides a full list of affected ETP Securities, but there is no operational, financial, or performance data disclosed. Assertions that the termination is not prejudicial to holders are management statements, not supported by quantitative evidence, but the lack of any prior activation supports the claim that there is no practical impact. The disclosure is thorough regarding legal and procedural facts but offers no new information relevant to financial performance or strategic direction.

Analysis

The announcement is strictly procedural, disclosing the termination of an agreement that was never activated and has no operational or financial impact on ETP Securityholders. The language is factual and avoids promotional or exaggerated claims. The only forward-looking statement is the effective date of termination, which is imminent (within days of the notice). There are no claims of future benefits, growth, or value creation, nor is there any mention of capital outlay or investment returns. Assertions that the termination is not prejudicial to holders are management statements but are proportionate given the context and lack of activation. No evidence of narrative inflation or overstatement is present.

Risk flags

• ●There is a minimal risk that procedural changes could be misunderstood by holders, but the company has provided clear legal and factual context to mitigate confusion.
• ●The assertion that no ETP Securityholders are affected relies on the fact that the agreement was never activated; if this understanding is incorrect, there could be unforeseen administrative implications, though the disclosure appears comprehensive.
• ●No operational or financial risks are introduced by this termination, as the agreement had no effect on actual ETP issuance or management.

Bottom line

This announcement is strictly administrative, confirming the end of an unused agreement between Leverage Shares plc and GWM Limited. There is no operational, financial, or strategic impact for ETP Securityholders, as GWM Limited was never appointed as an authorised participant and the agreement had no practical effect. The company's narrative is credible and proportionate to the facts disclosed, with no evidence of hype or narrative inflation. Investors do not need to take any action, and there are no implications for the value or structure of the listed ETPs. The most important takeaway is that this is a non-event for holders—no change in risk, exposure, or product terms results from this notice.

Announcement summary

Leverage Shares plc has announced the termination of the amended and restated authorised participant agreement dated 18 December 2020 between itself and GWM Limited, which was a prospective authorised participant. The termination will take effect from and including 2 November 2026. The agreement related to the issuer's programme for the issuance of collateralised exchange traded securities. The issuer confirms that GWM Limited has never been appointed as an authorised participant in respect of any Series of ETP Securities, as no confirmation of appointment has been entered into under Clause 2.1 of the agreement for any Series. As a result, this termination does not affect any ETP Securityholders. The issuer states that the termination is not materially prejudicial to the interests of the ETP Securityholders. The notice is addressed to holders of the Series of ETP Securities listed in Schedule 1 of the notice. Schedule 1 lists the names and ISINs of all relevant Series of ETP Securities affected by this notice. The capitalised terms used in the notice but not defined are as per the Master Definitions Schedule in relation to the Programme dated 17 July 2024. The issuer advises any ETP Securityholder with queries to contact them at info@leverageshares.com. The directors of Leverage Shares plc have signed the notice. The notice includes a comprehensive list of ETP Securities by name and ISIN, including products referencing companies such as Alphabet, Amazon, Apple, Facebook, Goldman Sachs, Microsoft, Visa, Netflix, Nvidia, Tesla, Alibaba, Micron Technology, Advanced Micro Devices, Uber, Salesforce.COM, Paypal, Boeing, Square, Mercedes Benz, ARM, UBS, and many others. The list also includes tracker ETPs, long and short leveraged ETPs, and ETPs referencing indices, commodities, and thematic baskets. The notice is intended for immediate attention by holders of the affected ETP Securities.

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