MicroSectors™ Cannabis ETNs

Base Data
Daily Market Data
Description
Key Risks
Disclaimer
Documents

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Base Data
Daily Market Data
Description
Key Risks
Disclaimer
Documents

Product Details
Primary Exchange	NYSE Arca
ETN Ticker	MJJ
Intraday Indicative Value Ticker	MJJIV
Underlying Ticker	MSMJ
CUSIP	63679682
Issue Date	December 13, 2019
Maturity Date	November 17, 2039

Daily Market Data	(as of Dec 23, 2021)
Closing Indicative Note Value	$73.2200
Market Capitalization	$43,932,000
ETNs Outstanding	600,000

Description
The return on the MicroSectors Cannabis ETNs (ETNs) is linked to the participation in the performance of the Index, minus the applicable fees. The ETNs provide exposure to the Indxx™ North American Cannabis Index. The Indxx North American Cannabis Index includes North American stocks designed to track the performance of companies that provide products or services related to the medical or industrial use of cannabis or cannabis related products. The index’s underlying composition is market cap weighted and liquidity adjusted.

Description

The return on the MicroSectors Cannabis ETNs (ETNs) is linked to the participation in the performance of the Index, minus the applicable fees. The ETNs provide exposure to the Indxx™ North American Cannabis Index. The Indxx North American Cannabis Index includes North American stocks designed to track the performance of companies that provide products or services related to the medical or industrial use of cannabis or cannabis related products. The index’s underlying composition is market cap weighted and liquidity adjusted.

Additional Information

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Key Risks
An investment in the MicroSectors™ Cannabis Exchange Traded Notes (the “ETNs”) involves risks. Key risks are summarized here, but we urge you to read the more detailed explanation of risks described under “Risk Factors” in Bank of Montreal’s pricing supplement for these securities. You may lose some or all of your principal - The ETNs do not guarantee any return on your initial investment. The ETNs are exposed to the risk of any decrease in the level of the Index. Because the Daily Investor Fee will reduce your final payment, the level of the Index, measured as a component of the closing Indicative Note Value during the Final Measurement Period or Call Measurement Period, or on a Redemption Measurement Date, will need to increase by an amount at least equal to the percentage of the principal amount represented by the Daily Investor Fee and any Redemption Fee Amount in order for you to receive an aggregate amount at maturity, upon a call or redemption, or if you sell your ETNs, that is equal to at least the principal amount. You may lose some or all of your investment at maturity or call, or upon early redemption. Credit of issuer - The ETNs are senior unsecured debt obligations of the issuer, Bank of Montreal, and are not, either directly or indirectly, an obligation of any third party. Any payment to be made on the ETNs, including any payment at maturity, call or upon early redemption, depends on the ability of Bank of Montreal to satisfy its obligations as they come due. As a result, the actual and perceived creditworthiness of Bank of Montreal will affect the market value, if any, of the ETNs prior to maturity, call or early redemption. In addition, in the event Bank of Montreal defaults on its obligations, you may not receive any amounts owed to you under the terms of the ETNs. Potential total loss of value - If the closing Indicative Note Value of the ETNs is equal to or less than $0 on any Exchange Business Day, then the Indicative Note Value on all future Exchange Business Days will be $0. If the Intraday Indicative Value of the ETNs is equal to or less than $0 at any time on any Index Business Day, then both the Intraday Indicative Value of the ETNs and the closing Indicative Note Value on that Exchange Business Day, and on all future Exchange Business Days, will be $0. If the Indicative Note Value is zero, the Cash Settlement Amount will be zero. The Index has a limited actual performance history - The Index was launched in November 2019. Because the Index is of recent origin and limited actual historical performance data exists with respect to it, your investment in the ETNs may involve a greater risk than investing in securities linked to one or more indices with a more established record of performance. The Index lacks diversification and is concentrated in one sector - All of the stocks included in the Index are issued by companies in the cannabis sector. As a result, the ETNs will not benefit from the diversification that could result from an investment linked to an index of companies that operate in multiple sectors. There are significant risks in making an investment linked to stocks in the cannabis sector. Any reduction in the market price of any of those stocks is likely to have a substantial adverse impact on the Index Closing Level and the value of the ETNs. A trading market for the ETNs may not develop - The ETNs are listed on the NYSE Arca under the symbol “MJJ.” However, a trading market for the ETNs may not develop. We are not required to maintain any listing of the ETNs on the NYSE Arca or any other exchange. The Intraday Indicative Value is not the same as the trading price of the ETNs in the secondary market - The Intraday Indicative Value of the ETNs will be calculated and published every 15 seconds on each Exchange Business Day during normal trading hours on Bloomberg under the ticker symbol MJJIV so long as no Market Disruption Event has occurred or is continuing. The trading price of the ETNs at any time is the price at which you may be able to sell your ETNs in the secondary market at such time, if one exists. The trading price of the ETNs at any time may vary significantly from the Intraday Indicative Value of the ETNs at such time. Paying a premium purchase price over the Intraday Indicative Value of the ETNs could lead to significant losses in the event one sells such ETNs at a time when such premium is no longer present in the market place or the ETNs are called - Paying a premium purchase price over the Intraday Indicative Value of the ETNs could lead to significant losses in the event one sells the ETNs at a time when such premium is no longer present in the market place or if the ETNs are called, in which case investors will receive a cash payment in an amount based on the arithmetic mean of the closing Indicative Note Value of the ETNs during the Call Measurement Period. Before trading in the secondary market, you should compare the Intraday Indicative Value with the then-prevailing trading price of the ETNs. Call Right - We may elect to redeem all outstanding ETNs at any time. If we exercise our Call Right, the Call Settlement Amount may be less than the principal amount of your ETNs. Any exercise by us of our Call Right could present a conflict between your interest in the ETNs and our interests in determining whether to call the ETNs. Minimum redemption amount - You must elect to redeem at least 25,000 ETNs for us to repurchase your ETNs, unless we determine otherwise or your broker or other financial intermediary bundles your ETNs for redemption with those of other investors to reach this minimum requirement, and there can be no assurance that they can or will do so. Therefore, your ability to elect redemption of the ETNs may be limited. Your redemption election is irrevocable - You will not be able to rescind your election to redeem your ETNs after your redemption notice is received by us. Accordingly, you will be exposed to market risk if the level of the Index decreases after we receive your offer and the Redemption Amount is determined on the Redemption Measurement Date. You will not know the Redemption Amount at the time that you submit your irrevocable redemption notice. No interest payments or ownership rights - The ETNs do not pay any interest. You will not have any ownership rights in the Index constituents, nor will you have any right to receive dividends or other distributions paid to holders of the Index constituents, except to the extent that dividends paid on U.S. stocks are reflected in the level of the Index. Potential conflicts - We and our affiliates play a variety of roles in connection with the issuance of the ETNs, including acting as an agent of the issuer for the offering of the ETNs, making certain calculations and determinations that may affect the value of the ETNs and hedging our obligations under the ETNs. Any profit in connection with such hedging activities will be in addition to any other compensation that we and our affiliates receive for the sale of the ETNs, which creates an additional incentive to sell the ETNs to you. In performing these activities, our economic interests and those of our affiliates are potentially adverse to your interests as an investor in the ETNs. Uncertain tax treatment - Significant aspects of the tax treatment of the ETNs are uncertain. You should consult your own tax advisor about your own tax situation. Bank of Montreal and its affiliates do not provide tax advice, and nothing contained herein should be construed as tax advice. Please be advised that any discussion of U.S. tax matters contained herein (including any attachments): (i) is not intended or written to be used, and cannot be used, by you for the purposes of avoiding U.S. tax-related penalties, and (ii) was written to support the promotion of marketing of the transactions or other matters addressed herein. Accordingly, you should seek advice based on your particular circumstances from your independent tax advisor.

Key Risks

An investment in the MicroSectors™ Cannabis Exchange Traded Notes (the “ETNs”) involves risks. Key risks are summarized here, but we urge you to read the more detailed explanation of risks described under “Risk Factors” in Bank of Montreal’s pricing supplement for these securities.

You may lose some or all of your principal - The ETNs do not guarantee any return on your initial investment. The ETNs are exposed to the risk of any decrease in the level of the Index. Because the Daily Investor Fee will reduce your final payment, the level of the Index, measured as a component of the closing Indicative Note Value during the Final Measurement Period or Call Measurement Period, or on a Redemption Measurement Date, will need to increase by an amount at least equal to the percentage of the principal amount represented by the Daily Investor Fee and any Redemption Fee Amount in order for you to receive an aggregate amount at maturity, upon a call or redemption, or if you sell your ETNs, that is equal to at least the principal amount. You may lose some or all of your investment at maturity or call, or upon early redemption.

Credit of issuer - The ETNs are senior unsecured debt obligations of the issuer, Bank of Montreal, and are not, either directly or indirectly, an obligation of any third party. Any payment to be made on the ETNs, including any payment at maturity, call or upon early redemption, depends on the ability of Bank of Montreal to satisfy its obligations as they come due. As a result, the actual and perceived creditworthiness of Bank of Montreal will affect the market value, if any, of the ETNs prior to maturity, call or early redemption. In addition, in the event Bank of Montreal defaults on its obligations, you may not receive any amounts owed to you under the terms of the ETNs.

Potential total loss of value - If the closing Indicative Note Value of the ETNs is equal to or less than $0 on any Exchange Business Day, then the Indicative Note Value on all future Exchange Business Days will be $0. If the Intraday Indicative Value of the ETNs is equal to or less than $0 at any time on any Index Business Day, then both the Intraday Indicative Value of the ETNs and the closing Indicative Note Value on that Exchange Business Day, and on all future Exchange Business Days, will be $0. If the Indicative Note Value is zero, the Cash Settlement Amount will be zero.

The Index has a limited actual performance history - The Index was launched in November 2019. Because the Index is of recent origin and limited actual historical performance data exists with respect to it, your investment in the ETNs may involve a greater risk than investing in securities linked to one or more indices with a more established record of performance.

The Index lacks diversification and is concentrated in one sector - All of the stocks included in the Index are issued by companies in the cannabis sector. As a result, the ETNs will not benefit from the diversification that could result from an investment linked to an index of companies that operate in multiple sectors. There are significant risks in making an investment linked to stocks in the cannabis sector. Any reduction in the market price of any of those stocks is likely to have a substantial adverse impact on the Index Closing Level and the value of the ETNs.

A trading market for the ETNs may not develop - The ETNs are listed on the NYSE Arca under the symbol “MJJ.” However, a trading market for the ETNs may not develop. We are not required to maintain any listing of the ETNs on the NYSE Arca or any other exchange.

The Intraday Indicative Value is not the same as the trading price of the ETNs in the secondary market - The Intraday Indicative Value of the ETNs will be calculated and published every 15 seconds on each Exchange Business Day during normal trading hours on Bloomberg under the ticker symbol MJJIV so long as no Market Disruption Event has occurred or is continuing. The trading price of the ETNs at any time is the price at which you may be able to sell your ETNs in the secondary market at such time, if one exists. The trading price of the ETNs at any time may vary significantly from the Intraday Indicative Value of the ETNs at such time.

Paying a premium purchase price over the Intraday Indicative Value of the ETNs could lead to significant losses in the event one sells such ETNs at a time when such premium is no longer present in the market place or the ETNs are called - Paying a premium purchase price over the Intraday Indicative Value of the ETNs could lead to significant losses in the event one sells the ETNs at a time when such premium is no longer present in the market place or if the ETNs are called, in which case investors will receive a cash payment in an amount based on the arithmetic mean of the closing Indicative Note Value of the ETNs during the Call Measurement Period. Before trading in the secondary market, you should compare the Intraday Indicative Value with the then-prevailing trading price of the ETNs.

Call Right - We may elect to redeem all outstanding ETNs at any time. If we exercise our Call Right, the Call Settlement Amount may be less than the principal amount of your ETNs. Any exercise by us of our Call Right could present a conflict between your interest in the ETNs and our interests in determining whether to call the ETNs.

Minimum redemption amount - You must elect to redeem at least 25,000 ETNs for us to repurchase your ETNs, unless we determine otherwise or your broker or other financial intermediary bundles your ETNs for redemption with those of other investors to reach this minimum requirement, and there can be no assurance that they can or will do so. Therefore, your ability to elect redemption of the ETNs may be limited.

Your redemption election is irrevocable - You will not be able to rescind your election to redeem your ETNs after your redemption notice is received by us. Accordingly, you will be exposed to market risk if the level of the Index decreases after we receive your offer and the Redemption Amount is determined on the Redemption Measurement Date. You will not know the Redemption Amount at the time that you submit your irrevocable redemption notice.

No interest payments or ownership rights - The ETNs do not pay any interest. You will not have any ownership rights in the Index constituents, nor will you have any right to receive dividends or other distributions paid to holders of the Index constituents, except to the extent that dividends paid on U.S. stocks are reflected in the level of the Index.

Potential conflicts - We and our affiliates play a variety of roles in connection with the issuance of the ETNs, including acting as an agent of the issuer for the offering of the ETNs, making certain calculations and determinations that may affect the value of the ETNs and hedging our obligations under the ETNs. Any profit in connection with such hedging activities will be in addition to any other compensation that we and our affiliates receive for the sale of the ETNs, which creates an additional incentive to sell the ETNs to you. In performing these activities, our economic interests and those of our affiliates are potentially adverse to your interests as an investor in the ETNs.

Uncertain tax treatment - Significant aspects of the tax treatment of the ETNs are uncertain. You should consult your own tax advisor about your own tax situation.

Bank of Montreal and its affiliates do not provide tax advice, and nothing contained herein should be construed as tax advice. Please be advised that any discussion of U.S. tax matters contained herein (including any attachments): (i) is not intended or written to be used, and cannot be used, by you for the purposes of avoiding U.S. tax-related penalties, and (ii) was written to support the promotion of marketing of the transactions or other matters addressed herein. Accordingly, you should seek advice based on your particular circumstances from your independent tax advisor.

Disclaimer

Disclaimer

“Indxx” is a service mark of Indxx and has been licensed for use for certain purposes by the Advisor. The Notes are not sponsored, endorsed, sold or promoted by Indxx. Indxx makes no representation or warranty, express or implied, to the owners of the Notes or any member of the public regarding the advisability of investing in securities generally or in the Notes particularly. Indxx has no obligation to take the needs of the Advisor or the shareholders of the Notes into consideration in determining, composing or calculating the Underlying Indices. Indxx is not responsible for and has not participated in the determination of the timing, amount or pricing of the Note shares to be issued or in the determination or calculation of the equation by which the Note shares are to be converted into cash. Indxx has no obligation or liability in connection with the administration, marketing or trading of the Notes.

MicroSectors™ and REX™ are registered trademarks of REX. The trademarks have been licensed for use for certain purposes by Bank of Montreal. The notes are not sponsored, endorsed, sold or promoted by REX or any of its affiliates or third party licensors (collectively, “REX Index Parties”). REX Index Parties make no representation or warranty, express or implied, to the owners of the notes or any member of the public regarding the advisability of investing in securities generally or in the notes particularly or the ability of the Index to track general market performance. REX Index Parties’ only relationship to Bank of Montreal with respect to the Index is the licensing of the Index and certain trademarks, service marks and/or trade names of REX Index Parties. REX Index Parties are not responsible for and have not participated in the determination of the prices, and amount of the notes or the timing of the issuance or sale of the notes or in the determination or calculation of the equation by which the notes are to be converted into cash. REX Index Parties have no obligation or liability in connection with the administration, marketing or trading of the notes. Inclusion of a security within an index is not a recommendation by REX Index Parties to buy, sell, or hold such security, nor is it considered to be investment advice.

REX INDEX PARTIES DO NOT GUARANTEE THE ADEQUACY, ACCURACY, TIMELINESS AND/OR THE COMPLETENESS OF THE INDEX OR ANY DATA RELATED THERETO OR ANY COMMUNICATION, INCLUDING BUT NOT LIMITED TO, ORAL OR WRITTEN COMMUNICATION (INCLUDING ELECTRONIC COMMUNICATIONS) WITH RESPECT THERETO. REX INDEX PARTIES SHALL NOT BE SUBJECT TO ANY DAMAGES OR LIABILITY FOR ANY ERRORS, OMISSIONS, OR DELAYS THEREIN. REX INDEX PARTIES MAKE NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIM ALL WARRANTIES, OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE OR AS TO RESULTS TO BE OBTAINED BY BANK OF MONTREAL, OWNERS OF THE NOTES, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE INDEX OR WITH RESPECT TO ANY DATA RELATED THERETO. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT WHATSOEVER SHALL REX INDEX PARTIES BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES INCLUDING BUT NOT LIMITED TO, LOSS OF PROFITS, TRADING LOSSES, LOST TIME OR GOODWILL, EVEN IF THEY HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, WHETHER IN CONTRACT, TORT, STRICT LIABILITY, OR OTHERWISE.

Documents
Fact Sheet Prospectus

Bank of Montreal, the issuer of the ETNs, has filed a registration statement (including a pricing supplement, product supplement, prospectus supplement and prospectus) with the SEC about the offerings to which this website relates. Please read those documents and the other documents relating to these offerings that Bank of Montreal has filed with the SEC for more complete information about Bank of Montreal and these offerings. These documents may be obtained without cost by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, Bank of Montreal, any agent or any dealer participating in these offerings will arrange to send the pricing supplement, the product supplement, the prospectus supplement and the prospectus if so requested by calling toll-free at 1-877-369-5412.

MicroSectors™ Cannabis ETNs