Merlyn.AI Corporation Announces ETFs Liquidation, De-listing

Rhea-AI Summary

EA Series Trust has approved the liquidation of Merlyn.AI Bull-Rider Bear-Fighter ETF and Merlyn.AI SectorSurfer Momentum ETF. Shareholders will receive a cash distribution equal to the net asset value of their shares. The funds will cease trading on NASDAQ and Cboe. The liquidation process will result in increased cash holdings, inconsistent with the funds' investment objective and strategy. Shareholders should consult their tax adviser for the tax consequences of the liquidation.

Positive

• EA Series Trust approved the liquidation of Merlyn.AI Bull-Rider Bear-Fighter ETF and Merlyn.AI SectorSurfer Momentum ETF. Shareholders will receive a cash distribution equal to the net asset value of their shares.

Negative

• The liquidation process will result in increased cash holdings, inconsistent with the funds' investment objective and strategy.

PHILADELPHIA, Oct. 26, 2023 /PRNewswire/ -- (ETF Architect) -- Upon the recommendation of Empowered Funds, LLC, dba EA Advisers, the Board of Trustees (the "Board") of EA Series Trust (the "Trust") approved a proposal to liquidate the Merlyn.AI Bull-Rider Bear-Fighter ETF and Merlyn.AI SectorSurfer Momentum ETF ("WIZ" and "DUDE", or the "Funds"), each a series of the Trust. After careful consideration of a number of factors, including its inability to attract sufficient investment assets, the Board concluded that it is advisable and in the best interest of the Funds and its shareholders to liquidate the Funds. Any shareholders still holding shares of the funds at liquidation will receive a cash distribution equal to the net asset value (NAV) of their shares.

WIZ will cease trading on the NASDAQ Stock Market LLC ("NASDAQ"), DUDE will cease trading on the Cboe BZX Exchange, INC. ("Cboe"). The funds will be closed to purchase by investors as of the close of regular trading on November 10, 2023 (the "Closing Date"). The Funds will not accept purchase orders after the Closing Date.

Shareholders may sell their holdings in the Funds prior to the Closing Date and customary brokerage charges will apply to these transactions. However, from November 10, 2023 through November 17, 2023 (the "Liquidation Date"), shareholders may be able to sell their shares only to certain broker-dealers and there is no assurance that there will be a market for the Funds' shares during this time period. Between the Closing Date and the Liquidation Date, the Funds will be in the process of closing down and liquidating the Funds' portfolio. This process will result in the Funds increasing its cash holdings, which is inconsistent with the Funds' investment objective and strategy.

On or about the Liquidation Date, the Funds will liquidate its assets and distribute cash pro rata to all shareholders of record who have not previously redeemed or sold their shares, subject to any required withholding. Liquidation proceeds paid to shareholders generally should be treated as received in exchange for shares and will therefore be treated as a taxable event giving rise to a capital gain or loss depending on a shareholder's tax basis. Shareholders should contact their tax adviser to discuss the income tax consequences of the liquidation. In addition, these payments to shareholders may include distributions of accrued capital gains and dividends. As calculated on the Liquidation Date, the Funds' net asset value will reflect the costs of closing the Funds. Once the distributions are complete, the Funds will terminate.

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Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Funds, please call 1.215.882.9983 or visit our website at merlynetfs.com. Read the prospectus or summary prospectus carefully before investing.

Investing involves risk. Principal loss is possible.

The Funds are distributed by Quasar Distributors, LLC.

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SOURCE ETF Architect

FAQ

What is the announcement from EA Series Trust?

EA Series Trust has approved the liquidation of Merlyn.AI Bull-Rider Bear-Fighter ETF and Merlyn.AI SectorSurfer Momentum ETF.

What will shareholders receive during the liquidation?

Shareholders will receive a cash distribution equal to the net asset value of their shares.

When will the funds cease trading?

The funds will cease trading on NASDAQ and Cboe.

What will happen to the funds' portfolio during the liquidation process?

The funds will increase its cash holdings, which is inconsistent with the funds' investment objective and strategy.

What should shareholders do regarding tax consequences?

Shareholders should consult their tax adviser for the tax consequences of the liquidation.