TrueMark Investments and RiverNorth Capital Management Launch First Actively Managed Pre-Merger SPAC ETF to Incorporate Leverage

CHICAGO–(BUSINESS WIRE)–RiverNorth Capital Management, LLC and TrueMark Investments today announced the launch of the RiverNorth Enhanced Pre-Merger SPAC ETF (SPCZ), traded on the NYSE. SPCZ is an actively managed fund that invests in pre-merger securities of SPAC (Special Purpose Acquisition Companies) whose business plan is to raise capital through an initial public offering (IPO) and, in a specified period, to engage in a merger or acquisition with one or more unidentified companies. Trading in the new fund is live today.

“SPCZ is the first pre-merger SPAC ETF to opportunistically deploy leverage while giving investors access to RiverNorth’s trading strategies and programs that seek to extract value from buying and selling SPAC securities, including units, common stock and warrants,” said Mike Loukas, CEO. of TrueMark Investments, which will act as advisor to the Fund.

“RiverNorth has deep experience in managing SPAC strategies and we recognize that the value of a SPAC is often before it goes through a merger with a private company, the so-called de-SPAC transaction,” said Patrick Galley , portfolio manager for SPCZ and CEO. /CIO of RiverNorth. RiverNorth is the Fund’s sub-advisor, with responsibility for the day-to-day management of the portfolio. “We are excited to release this active strategy in a liquid ETF format.”

The Fund invests primarily in pre-merger SPACs that are seeking a target for a merger or that have not yet completed a merger with an identified target. Pre-merger SPACs often have pre-determined time frames for completing a combination (usually two years), at which time the SPAC will seek to extend the time frame or liquidate. The Fund aims to capture the potential discount, equity upside and pre-merger SPAC interest income. One of the Fund’s objectives is to achieve positive absolute rates of return, particularly when measured against the level of risk assumed. The Fund can be used in the alternative allocation of a portfolio with the aim of capturing alpha with a low correlation with traditional asset classes.

The Fund uses leverage opportunistically depending on valuations. SPCZ seeks to increase leverage when stocks are trading below the confidence value and to decrease leverage when stocks are trading above the confidence value. The investment team pays particular attention to the terms and valuation of new issuers relative to the terms and conditions of transactions already traded on the secondary market; the portfolio is adjusted to the best opportunities.

About RiverNorth Capital Management, LLC

RiverNorth Capital Management, LLC is an investment management firm founded in 2000. With $5.7 billion1 of assets under management as of May 31, 2022, RiverNorth specializes in opportunistic investment strategies in niche markets where the potential for exploiting inefficiencies is greatest. RiverNorth is an institutional investment manager for registered funds, private funds and separately managed accounts.

1. Includes assets attributable to leverage and investments in affiliated funds.

About TrueMark Investments

At TrueMark, we serve investors with ETFs looking to provide true exposure to the asset classes, strategies and thematic industries of the modern economy. We combine investment expertise with industry knowledge and experience, partnering with third parties who we believe to be specialized and highly qualified industry experts to inform investment management decisions, the all at a price comparable to passive management.

New fund risk. The Fund is a recently incorporated investment company with no operating history. Therefore, potential investors have no track record or track record on which to base their investment decision.

Leverage risk. Speculative use of leverage could magnify the Fund’s gains or losses and increase risk. This is the speculative factor known as leverage. Borrowing may also require the Fund to liquidate positions in adverse market conditions to meet its repayment obligations. Borrowing increases the risk of loss and may increase the Fund’s volatility.

SPAC risk before consolidation (before merger). The Fund invests in equity securities and warrants of SPACs. Pre-combination SPACs have no operating history or ongoing activities other than seeking Combinations, and the value of their securities depends particularly on the ability of the entity’s management to identify and achieve a profitable merger. There can be no assurance that the SPACs in which the Fund invests will complete a Combination or that any completed Combination will be profitable. Unless and until a Combination is effected, a SPAC generally invests its assets in US government securities, money market securities and cash. Public shareholders of SPAC may not be offered a meaningful opportunity to vote on a proposed Initial Combination because some shareholders, including shareholders affiliated with the management of SPAC, may have sufficient voting power and a financial incentive to approve such a transaction without support from public shareholders.

Some SPACs may pursue Consolidations only in certain industries or regions, which may increase their price volatility. In addition, the Fund may invest in vehicles set up by SPAC sponsors to hold Founder Shares, which may be forfeited or expire worthless and which generally have more limited liquidity than SPAC shares issued in an IPO. . In addition, the Fund may invest in vehicles set up by SPAC sponsors to hold Founder Shares, which may be forfeited or expire worthless and which generally have more limited liquidity than SPAC shares issued in an IPO. .

Foreign Securities Risk. Foreign SPACs Investments in SPACs domiciled or listed outside the United States may involve risks not generally associated with investments in the securities of US SPACs, such as risks relating to political, social and economic developments in the United States. foreign and differences between U.S. and foreign regulatory and market requirements. practices. In addition, the tax treatment may differ from that of US SPACs and the securities may be subject to foreign withholding taxes.

Small Cap Risk. SPACs will have a more limited pool of companies with which they can pursue a business combination compared to larger capitalization companies. This can make it more difficult for a small cap SPAC to complete a business combination.

Liquidity refers to the efficiency or ease with which an asset or security can be converted into available cash without affecting its market price.

Distributor: Foreside Fund Services, LLC.

Before investing, carefully consider the investment objectives, risks, fees and expenses of TrueShares ETFs. Specific information about TrueShares is contained in the prospectus and a simplified prospectus, copies of which can be obtained by visiting Read the prospectus carefully before investing.

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