If the Securities priced today, the estimated value of the Securities would be between $929.53 and
$958.00 per $1,000 Principal Amount. See “The Bank’s Estimated Value of the Securities” in the preliminary pricing supplement.
H
ypothetical Returns
If the Securities are automatically called:
Hypothetical Call Date on which Securities are automatically called
|
Hypothetical payment per Security on related Call Settlement Date
|
Hypothetical pre-tax total rate of return
|
1
st
call date
|
$1,110.00
|
11.00%
|
2
nd
call date
|
$1,220.00
|
22.00%
|
3
rd
call date
|
$1,330.00
|
33.00%
|
Assumes the Call Premiums are equal to the midpoints of their specified ranges. Each Security has a
Principal Amount of $1,000.
If the Securities are not automatically called:
Hypothetical Ending Price
|
Hypothetical Percentage Change
|
Hypothetical Redemption Amount at Maturity per Security
|
Hypothetical pre-tax total rate of return
|
$95.00
|
-5.00%
|
$1,000.00
|
0.00%
|
$85.00
|
-15.00%
|
$1,000.00
|
0.00%
|
$80.00
|
-20.00%
|
$950.00
|
-5.00%
|
$75.00
|
-25.00%
|
$900.00
|
-10.00%
|
$50.00
|
-50.00%
|
$650.00
|
-35.00%
|
$25.00
|
-75.00%
|
$400.00
|
-60.00%
|
$0.00
|
-100.00%
|
$150.00
|
-85.00%
|
The above figures are for purposes of illustration only and may have been rounded for ease of analysis. The actual amount you receive upon automatic call
or at maturity and the resulting pre-tax rate of return will depend on (i) whether the Securities are automatically called; (ii) if the Securities are automatically called, the actual Call Premium and the actual Call Date on which the Securities
are called; (iii) if the Securities are not automatically called, the actual Ending Price of the Reference Asset; and (iv) whether you hold your Securities to maturity or earlier automatic call
.
Call Dates and Call Premiums
The actual Call Premium and Payment per Security upon an automatic call that is applicable to each Call Date will be
determined on the Pricing Date and will be within the ranges specified in the foregoing table. The last Call Date is the Final Calculation Day, and payment upon an automatic call on the Final Calculation Day, if applicable, will be made on the
Maturity Date.
* July 29, 2022 is also the Final Calculation Day.
How the Redemption Amount at Maturity is Calculated
If the Fund Closing Price of the Reference Asset is less than the Starting Price on each of the three Call Dates, the
Securities will not be automatically called, and on the Maturity Date you will receive a Redemption Amount at Maturity per Security determined as follows:
●
|
If the Ending Price is less than the Starting Price and greater than or equal to the Threshold Price, the Redemption Amount at Maturity will equal: $1,000; or
|
●
|
If the Ending Price is less than the Threshold Price, the Redemption Amount at Maturity will be equal:
|
Principal Amount + [Principal Amount x (Percentage Change + Threshold Percentage)]
In this case, you will receive less than the Principal Amount and will have 1-to-1 downside exposure to the decrease
in the price of the Reference Asset in excess of 15.00%.
Any positive return on the Securities will be limited to the applicable Call Premium, even if the Fund Closing Price of
the Reference Asset significantly exceeds the Starting Price on the applicable Call Date. You will not participate in any appreciation of the Reference Asset beyond the applicable Call Premium. If the Securities are not automatically called on any
Call Date and the Ending Price is less than the Threshold Price, you will receive less, and possibly 85.00% less, than the Principal Amount of your Securities at maturity.
SPDR
®
S&P
®
Oil & Gas Exploration & Production ETF Daily Closing Prices*
*
The graph above illustrates the performance of the Reference Asset from January 1, 2014 through June 24, 2019. The dotted line represents a
hypothetical Threshold Price of $22.389, which is equal to 85.00% of $26.34, which was the Closing Price of the Reference Asset on June 24, 2019. Past performance of the Reference Asset is not indicative of the future performance of the
Reference Asset.
Information from outside sources is not incorporated by reference in, and should not be considered part of, this introductory term sheet, the pricing supplement, the prospectus, the prospectus
supplement, or product prospectus supplement.
Selected Risk Considerations
The risks set forth below are discussed in detail in “Additional Risks” in the pricing supplement, “Additional Risk Factors Specific to the Notes” in the
product prospectus supplement and “Risk Factors” in the prospectus supplement and prospectus. Please review those risk disclosures carefully.
●
|
The Inclusion of Dealer Spread and Projected Profit from Hedging in the Original Offering Price is Likely to Adversely Affect Secondary Market Prices.
|
●
|
Risk of Loss at Maturity: Any payment on the Securities at maturity depends on the Percentage Change of the Reference Asset. If the Securities are not
automatically called, the Bank will only repay you the full Principal Amount of your Securities if the Percentage Change does not reflect a decrease in the Reference Asset of more than 15.00%. If the Percentage Change is negative by
more than 15.00%, meaning the Ending Price is less than the Threshold Price, you will lose a significant portion of your initial investment in an amount equal to the Percentage Change in excess of the Threshold Percentage. Accordingly,
if the Securities are not automatically called, you may lose up to 85.00% of your investment in the Securities if the percentage decline from the Starting Price to the Ending Price is greater than 15.00%.
|
●
|
The Downside Market Exposure to the Reference Asset is Buffered Only at Maturity.
|
●
|
The Potential Return On The Securities Is Limited To The Call Premium.
|
●
|
You Will Be Subject To Reinvestment Risk.
|
●
|
The Bank's Estimated Value of the Securities Will be Lower than the Original Offering Price of the Securities.
|
●
|
The Bank's Estimated Value Does Not Represent Future Values of the Securities and may Differ from Others' Estimates.
|
●
|
The Bank's Estimated Value is not Determined by Reference to Credit Spreads for our Conventional Fixed-Rate Debt.
|
●
|
The Securities Differ from Conventional Debt Instruments.
|
●
|
No Interest: The Securities will not bear interest and, accordingly, you will not receive any interest payments on the Securities.
|
●
|
Your Investment is Subject to the Credit Risk of The Bank of Nova Scotia.
|
●
|
The Securities are Subject to Market Risk.
|
●
|
The Securities are Subject to Risks Associated with Oil and Gas Companies.
|
●
|
The Bank Cannot Control Actions by the Investment Advisor of the Reference Asset that May Adjust the Reference Asset in a Way that Could Adversely
Affect the Payments on the Securities and Their Market Value, and the Investment Advisor Has No Obligation to Consider Your Interests.
|
●
|
There Are Risks Associated with The Reference Asset.
|
●
|
The Reference Asset Utilizes a Passive Indexing Approach.
|
●
|
The Value of the Reference Asset May Fluctuate Relative to its NAV.
|
●
|
The Reference Asset and The Target Index are Different and the Performance of the Reference Asset May Not Correlate with the Performance of the Target
Index
|
●
|
If the Prices of the Reference Asset or the Reference Asset Constituent Stocks Change, the Market Value of Your Securities May Not Change in the Same
Manner.
|
●
|
Holding
the Securities is Not the Same as Holding the Reference Asset Or The Reference Asset Constituent Stocks.
|
●
|
No Assurance that the Investment View Implicit in the Securities Will Be Successful.
|
●
|
Past Performance is Not Indicative of Future Performance.
|
●
|
We May Sell an Additional Aggregate Principal Amount of the Securities at a Different Issue Price.
|
●
|
Changes Affecting the Reference Asset Could Have an Adverse Effect on the Value of, and the Amount Payable on, the Securities.
|
●
|
The Bank Cannot Control Actions by the Investment Advisor and the Investment Advisor Has No Obligation to Consider Your Interests.
|
●
|
The Price at Which the Securities May Be Sold Prior to Maturity will Depend on a Number of Factors and May Be Substantially Less Than the Amount for
Which They Were Originally Purchased.
|
●
|
The Securities Lack Liquidity.
|
●
|
Hedging activities by the Bank and/or the Underwriters may negatively impact investors in the Securities and cause our respective interests and those of
our clients and counterparties to be contrary to those of investors in the Securities.
|
●
|
Market activities by the Bank or the Underwriters for their own respective accounts or for their respective clients could negatively impact investors in
the Securities
|
●
|
The
Bank, the Underwriters and Their Respective Affiliates Regularly Provide Services to, or Otherwise Have Business Relationships with, a Broad
Client Base, Which Has Included and May Include the Investment Advisor and/or Reference Asset Constituent Stock Issuers.
|
●
|
Other Investors in the Securities May Not Have the Same Interests as You.
|
●
|
The Calculation Agent Can Postpone any Call Date (including the Final Calculation Day) for the Securities if a Market Disruption Event with Respect to
the Reference Asset Occurs.
|
●
|
Anti-dilution Adjustments Relating to the Shares of the Reference Asset Do Not Address Every Event that Could Affect Such Shares.
|
●
|
There
is No Affiliation Between Any Reference Asset Constituent Stock Issuers or the Investment Advisor of the Reference Asset and Us and We Are
Not Responsible for Any Disclosure By Any of the Reference Asset Constituent Stock Issuers or the Investment Advisor of the Reference Asset.
|
●
|
A Participating Dealer or its Affiliates May Realize Hedging Profits Projected by its Proprietary Pricing Models in Addition to any Selling Concession,
Creating a Further Incentive for the Participating Dealer to Sell the Securities to You.
|
●
|
Uncertain Tax Treatment: Significant aspects of the tax treatment of the Securities are uncertain. You should consult your tax advisor about your own
tax situation. See "Canadian Income Tax Consequences" and "U.S. Federal Income Tax Consequences" in the pricing supplement.
|
Not
suitable for all investors
Investment suitability must be determined individually for each investor. The Securities
described herein are not a suitable investment for all investors. In particular, no investor should purchase the Securities unless they understand and are able to bear the associated market, liquidity and yield risks. Unless market conditions and
other relevant factors change significantly in your favor, a sale of the Securities prior to maturity is likely to result in sale proceeds that are substantially less than the Principal Amount per Security. The Underwriters and their respective
affiliates are not obligated to purchase the Securities from you at any time prior to maturity.
The
Issuer has filed a
registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the Issuer has filed with the
SEC for more complete information about the Issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC website at
www.sec.gov
.
Alternatively, the Issuer, any Underwriter or any
dealer participating in the offering will arrange to send you the prospectus if you request it by calling your financial advisor or by calling Wells Fargo Securities, LLC at 866-346-7732.
Not a research report
This material is not a product of the Bank’s research department.
Consult your tax advisor
Investors should review carefully the preliminary pricing supplement and consult their tax
advisors regarding the application of the U.S. federal tax laws to their particular circumstances, as well as any tax consequences arising under the laws of any state, local or non-U.S. jurisdiction.
SPDR
®
and S&P Total Markets Index™ are trademarks of Standard & Poor’s Financial Services LLC (“S&P Financial”). The securities are
not sponsored, endorsed, sold or promoted by the SPDR
®
Series Trust (the “Trust”), SSgA Funds Management, Inc. (“SSgA”) or S&P Financial. None of the Trust, SSgA or S&P Financial makes any representations or warranties to the
holders of the securities or any member of the public regarding the advisability of investing in the Securities. None of the Trust, SSgA or S&P Financial will have any obligation or liability in connection with the registration, operation,
marketing, trading or sale of the Securities or in connection with our use of information about the SPDR
®
S&P
®
Oil & Gas Exploration & Production ETF.
Wells Fargo Advisors is a trade name used by
Wells Fargo Clearing Services, LLC and Wells Fargo Advisors Financial Network, LLC, members SIPC, separate registered broker-dealers and non-bank affiliates of Wells Fargo & Company.