Filed Pursuant to Rule 433
Registration Statement No. 333-261476
CAPPED LEVERAGED INDEX RETURN NOTES® (CAPPED LIRNs®)
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Capped LIRNs® Linked to the Invesco S&P 500® Equal Weight ETF
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Issuer
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The Bank of Nova Scotia (“BNS”)
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Principal Amount
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$10.00 per unit
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Term
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Approximately two years
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Market Measure
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The Invesco S&P 500® Equal Weight ETF (Bloomberg symbol: “RSP”)
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Payout Profile at Maturity
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● 2-to-1 leveraged upside exposure to increases in the
Market Measure, subject to the Capped Value
● 1-to-1 downside exposure to decreases in the Market
Measure beyond a 10.00% decline, with up to 90.00% of your principal at risk
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Participation Rate
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200.00%
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Capped Value
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[$11.75 to $12.15] per unit, a [17.50% to 21.50%] return over the principal amount, to be determined on the pricing date
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Threshold Value
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90.00% of the Starting Value
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Investment Considerations
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This investment is designed for investors who anticipate that the Market Measure will increase moderately over the term of the notes, and are willing to accept a capped return, take
downside risk below a threshold and forgo interim interest payments.
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Preliminary Offering
Documents
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Exchange Listing
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No
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• |
Depending on the performance of the Market Measure as measured shortly before the maturity date, your investment may result in a loss; there is no guaranteed return of principal.
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• |
Payments on the notes are subject to the credit risk of BNS, and actual or perceived changes in the creditworthiness of BNS are expected to affect the value of the notes. If BNS becomes insolvent or is
unable to pay its obligations, you may lose your entire investment.
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• |
Your investment return is limited to the return represented by the Capped Value and may be less than a comparable investment directly in the Market Measure or the securities held by the Market Measure.
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• |
The initial estimated value of the notes on the pricing date will be less than their public offering price.
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• |
If you attempt to sell the notes prior to maturity, their market value may be lower than both the public offering price and the initial estimated value of the notes on the pricing date.
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• |
You will have no rights of a holder of the Market Measure or the securities held by the Market Measure, and you will not be entitled to receive any shares of the Market Measure or the securities held by
the Market Measure, or any dividends or other distributions in respect of the Market Measure or the securities held by the Market Measure.
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• |
There are liquidity and management risks associated with the Market Measure.
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• |
The performance of the Market Measure may not correlate with the performance of its underlying index as well as the net asset value per share of the Market Measure, especially during periods of market
volatility when the liquidity and the market price of the shares of the Market Measure and/or the securities held by the Market Measure may be adversely affected, sometimes materially.
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• |
Payments on the notes will not be adjusted for all corporate events that could affect the Market Measure.
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Hypothetical
Percentage Change
from the Starting
Value to the Ending
Value
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Hypothetical
Redemption Amount
per Unit
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Hypothetical Total
Rate of Return on the Notes |
-100.00%
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$1.00
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-90.00%
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-75.00%
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$3.50
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-65.00%
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-50.00%
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$6.00
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-40.00%
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-40.00%
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$7.00
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-30.00%
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-30.00%
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$8.00
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-20.00%
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-20.00%
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$9.00
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-10.00%
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-10.00%(1)
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$10.00
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0.00%
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-5.00%
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$10.00
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0.00%
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0.00%
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$10.00
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0.00%
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2.00%
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$10.40
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4.00%
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5.00%
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$11.00
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10.00%
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7.00%
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$11.40
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14.00%
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9.75%
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$11.95(2)
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19.50%
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10.00%
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$11.95
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19.50%
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20.00%
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$11.95
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19.50%
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30.00%
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$11.95
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19.50%
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40.00%
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$11.95
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19.50%
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50.00%
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$11.95
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19.50%
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(1) |
This hypothetical percentage change corresponds to the Threshold Value.
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(2)
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The Redemption Amount per unit cannot exceed the hypothetical Capped Value.
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