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Cannabis Growth ETF to liquidate

edited March 30 in Fund Discussions
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https://www.sec.gov/Archives/edgar/data/1587982/000139834422006487/fp0074517_497.htm

Cannabis Growth ETF
(Ticker Symbol: BUDX)

A series of Investment Managers Series Trust II (the “Trust”)

Supplement dated March 28, 2022 to the currently effective
Prospectus, Summary Prospectus and Statement of Additional Information (“SAI”).

The Board of Trustees of the Trust has approved a Plan of Liquidation for the Cannabis Growth ETF (the “Fund”). The Plan of Liquidation authorizes the termination, liquidation and dissolution of the Fund.

The Fund will create and redeem creation units through April 25, 2022 (the “Closing Date”), which will also be the last day of trading of the Fund’s shares on the NYSE Arca, Inc., the Fund’s principal U.S. listing exchange. On or about April 29, 2022 (the “Liquidation Date”), the Fund will cease operations, liquidate its assets, and prepare to distribute proceeds to shareholders of record as of the Liquidation Date. Shareholders of record on the Liquidation Date will receive cash at the net asset value of their shares as of such date. While Fund shareholders remaining on the Liquidation Date will not incur transaction fees, any liquidation proceeds paid to shareholders should generally be treated as received in exchange for shares and will therefore generally give 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 anticipation of the liquidation of the Fund, Foothill Capital Management, LLC, the Fund’s advisor, may manage the Fund in a manner intended to facilitate its orderly liquidation, such as by raising cash or making investments in other highly liquid assets. As a result, during this time, all or a portion of the Fund may not be invested in a manner consistent with its stated investment strategies, which may prevent the Fund from achieving its investment objective. Shareholders of the Fund may sell their holdings on the NYSE Arca, Inc. on or prior to the Closing Date. Customary brokerage charges may apply to such transactions. After the Closing Date, we cannot assure you that there will be a market for your shares.

Please contact the Fund at 1-888-885-0588 if you have any questions or need assistance.

Please file this Supplement with your records.

Comments

  • Hmmm, I guess the 'grass' always looks greener when you buy a fund like this. Now it's out in the 'weed'. Seemed like such a 'dope' idea. Up in 'smoke'.
  • The grass certainly must have looked greener on the other side when CANIX tried to turn over a new leaf by converting to BUDX.
    Converting [in Sept 2021 was] only logical for CANIX, which has easily outperformed popular cannabis ETFs such as MJ and YOLO yet hasn’t seen anything near their flows.
    https://www.bloomberg.com/professional/blog/cannabis-mutual-fund-about-to-join-50-billion-etf-switch-craze/
    https://www.sec.gov/Archives/edgar/data/1587982/000139834421018858/fp0068849_497.htm

    Though the whole sector seems to have gone to pot:

    YOLO down 53% since inception (April 2019)
    MJ down 38% since inception (Dec 2015)
    CNBS down 46% since inception (July 2019)
  • What it comes down to is either buying some bud or buying the ETF. I mean, come on.
  • Oh, yes... I remember MJ. I made a little on a quick in/out on that one.:)
  • From Citywire:

    Morningstar chief ratings officer Jeff Ptak, described the fund’s performance in a Monday tweet:

    Cannabis Growth ETF ($BUDX) is to be liquidated on or about 4/29/22. It lost ~72% from incept to Mar. ‘20; then soared 325% over next 11 mos.; only to shed ~65% of its value between Feb. ‘21 and now. All told, lost ~58% of its value since incept. https://t.co/n29HkC0ERj

    — Jeffrey Ptak (@syouth1) March 28, 2022
  • edited March 30
    @TheShadow … Re above ... Your spell checker must have changed inept to “incept”.

    PS - And I do remember when @Old_Joe was messing with the stuff. Don’t know whether that’s bad or good (that I can remember back that far).
  • edited March 30
    And I do remember when @Old_Joe was messing with the stuff.
    That's ok @hank, it's legal:) I used to mess with it too back in college days.
  • edited March 30
    @Hank,

    I checked the tweet from Citywire. It is stated as incept for inception.

    It would be "inept" if you had invested in it.
  • edited March 30
    @TheShadow - Thanks for going the extra mile. A releaf to know for certain. “Incept” it be.:)
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