Primary Offering Prospectus (Form 424B2)
The information in this preliminary pricing supplement is not complete and may be changed. This preliminary pricing supplement and the accompanying underlying supplement, prospectus supplement and prospectus are not an offer to sell these securities and we are not soliciting an offer to buy these securities in any jurisdiction where the offer or sale is not permitted.
Filed Pursuant to Rule 424(b)(2)
Registration No. 333-272447
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Subjectto Completion, Dated Pricing Supplement dated , 2024 (To ETF Underlying Supplement dated Prospectus Supplement dated 
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Senior Global Medium-Term Notes
$Capped Leveraged Buffered Notes Linked to the Worst Performing of the SPDR®
Industrial AverageSM
| · | The Capped Leveraged Buffered Notes (the "notes") provide a 1.25-to-1 upside exposure to any increases in the Worst Performing Underlying, subject to a Maximum Retuof at least 33.00% (to be determined on the Trade Date). If the price of the Worst Performing Underlying decreases by more than 20%, investors will be subject to a 1-to-1 downside exposure to any decrease in the price of the Worst Performing Underlying beyond a 20% decline. Accordingly, you may lose up to 80% of the principal amount. |
| · | For each |
| o | If the Final Price of the Worst Performing Underlying is greater than its Initial Price, the lesser of: |
(1)
(2)
| o | If the Final Price of the Worst Performing Underlying is equal to or less than its Initial Price but greater than or equal to its Buffer Price (80% of its Initial Price): |
| o | If the Final Price of the Worst Performing Underlying is less than its Buffer Price: |
In this case, you will lose up to 80% of the principal amount at maturity.
| · | The notes do not pay interest. |
| · | The notes will not be listed on any securities exchange. |
| · | The notes will be issued in minimum denomination of |
The notes are unsecured obligations of the Bank and any payment on the notes is subject to the credit risk of the Bank. The notes will not constitute deposits insured by the
Neither the
Investing in the notes involves risksnot associated with an investment in ordinary debt securities. See "Additional Risk Factors" beginning on page PS-7 of this pricing supplement, and "Risk Factors" beginning on page S-1 of the accompanying underlying supplement, page S-1 of the prospectus supplement and page 1 of the prospectus.
| Price to Public (Initial Issue Price)(1) | Underwriting Discount (1)(2) | Proceeds to Issuer | |
| Per Note | Up to |
At least |
|
| Total | $ | $ | $ |
| (1) | Because certain dealers who purchase the notes for sale to certain fee-based advisory accounts may forgo some or all of their commissions or selling concessions, the price to public for investors purchasing the notes in these accounts may be between |
| (2) |
The initial estimated value of the notes on the Trade Date as determined by the Bank is expected to be between
We will deliver the notes in book-entry form through the facilities of
ADDITIONAL TERMS OF THE NOTES
You should read this pricing supplement together with the prospectus dated
You should rely only on the information contained in or incorporated by reference in this pricing supplement and the accompanying underlying supplement, the prospectus supplement and the prospectus. This pricing supplement may be used only for the purpose for which it has been prepared. No one is authorized to give information other than that contained in this pricing supplement and the accompanying underlying supplement, the prospectus supplement and the prospectus, and in the documents referred to in those documents and which are made available to the public. We, CIBCWM and our other affiliates have not authorized any other person to provide you with different or additional information. If anyone provides you with different or additional information, you should not rely on it.
We and CIBCWM are not making an offer to sell the notes in any jurisdiction where the offer or sale is not permitted. You should not assume that the information contained in or incorporated by reference in this pricing supplement or the accompanying underlying supplement, the prospectus supplement or the prospectus is accurate as of any date other than the date of the applicable document. Our business, financial condition, results of operations and prospects may have changed since that date. Neither this pricing supplement nor the accompanying underlying supplement, the prospectus supplement or the prospectus constitutes an offer, or an invitation on behalf of us or CIBCWM, to subscribe for and purchase any of the notes and may not be used for or in connection with an offer or solicitation by anyone in any jurisdiction in which such an offer or solicitation is not authorized or to any person to whom it is unlawful to make such an offer or solicitation.
References to "CIBC," "the Issuer," "the Bank," "we," "us" and "our" in this pricing supplement are references to
You may access the underlying supplement, the prospectus supplement and the prospectus on the
| · | Underlying supplement dated |
https://www.sec.gov/Archives/edgar/data/1045520/000110465923098171/tm2322483d88_424b5.htm
| · | Prospectus supplement dated |
https://www.sec.gov/Archives/edgar/data/1045520/000110465923098166/tm2322483d94_424b5.htm
| · | Prospectus dated |
https://www.sec.gov/Archives/edgar/data/1045520/000110465923098163/tm2325339d10_424b3.htm
PS-1
SUMMARY
The information in this "Summary" section is qualified by the more detailed information set forth in the underlying supplement, the prospectus supplement and the prospectus. See "Additional Terms of the Notes" in this pricing supplement.
| Issuer: | |
| ReferenceAsset: | The worst performing of the SPDR® |
| Principal Amount: | |
| Aggregate Principal Amount: | $ |
| Term: | Approximately three years |
| Trade Date: | Expected to be |
| Original Issue Date: | Expected to be |
| Final Valuation Date: | Expected to be |
| Maturity Date: | Expected to be |
| Payment at Maturity: | For each |
||
| · | If the Final Price of the Worst Performing Underlying is greater than its Initial Price, the lesser of: | ||
| (1) | |||
| (2) | |||
| · | If the Final Price of the Worst Performing Underlying is equal to or less than its Initial Price but greater than or equal to its Buffer Price: | ||
| · | If the Final Price of the Worst Performing Underlying is less than its Buffer Price: | ||
| In this case, you will lose 1% of the principal amount for each 1% decrease in the price of the Worst Performing Underlying by more than 20%. Accordingly, you may lose up to 80% of the principal amount. | |||
| Upside Participation Rate: | 125% |
PS-2
| Maximum Return: | At least 33.00% (to be determined on the Trade Date) |
| Buffer Amount: | 20% |
| Buffer Price: | For each Fund, 80% of its Initial Price (rounded to two decimal places). |
| Percentage Change: |
The "Percentage Change" with respect to each Fund, expressed as a percentage, is calculated as follows: Final Price - Initial Price Initial Price |
| Worst Performing Underlying: | The Fund with the lowest Percentage Change. |
| Initial Price: | For each Fund, its Closing Price on the Trade Date, subject to adjustment as described under "Certain Terms of the Notes-Anti-Dilution Adjustments" in the underlying supplement. |
| Final Price: | For each Fund, its Closing Price on the Final Valuation Date. |
| Calculation Agent: | |
| CUSIP/ISIN: | 13607XV95 / US13607XV955 |
| Fees and Expenses: | The price at which you purchase the notes includes costs that the Bank or its affiliates expect to incur and profits that the Bank or its affiliates expect to realize in connection with hedging activities related to the notes. |
TheTrade Date and the other dates set forth above are subject to change, and will be set forth in the final pricing supplement relating to the notes.
PS-3
HYPOTHETICAL PAYMENT AT MATURITY
The following table and examples are provided for illustrative purposes only and are hypothetical. They do not purport to be representative of every possible scenario concerning increases or decreases in the Final Price of any Fund relative to its Initial Price. We cannot predict the Closing Price of any Fund at any time during the term of the notes, including the Final Valuation Date. The assumptions we have made in connection with the illustrations set forth below may not reflect actual events. You should not take this illustration or these examples as an indication or assurance of the expected performance of any Fund or retuon the notes. The numbers appearing in the table below and following examples have been rounded for ease of analysis.
The table below illustrates the Payment at Maturity on a
| Principal Amount: | ||
| Upside Participation Rate: | 125% | |
| Hypothetical Maximum Return: | 33.00% (The actual Maximum Retuwill be at least 33.00%, to be determined on the Trade Date) | |
| Buffer Amount: | 20% |
Hypothetical Initial Price of the Worst Performing Underlying:
Hypothetical Buffer Price of the Worst Performing Underlying:
| Hypothetical Final Price of the Worst Performing Underlying |
Hypothetical Percentage Change of the Worst Performing Underlying |
Hypothetical Payment at Maturity |
Hypothetical Retuon the Notes |
| 100.00% | 33.00% | ||
| 75.00% | 33.00% | ||
| 50.00% | 33.00% | ||
| 26.40% | 33.00%(1) | ||
| 10.00% | 12.50% | ||
| 5.00% | 6.25% | ||
| 2.00% | 2.50% | ||
| 0.00% | 0.00% | ||
| -5.00% | 0.00% | ||
| -10.00% | 0.00% | ||
| -20.00% | 0.00% | ||
| -21.00% | -1.00% | ||
| -25.00% | -5.00% | ||
| -50.00% | -30.00% | ||
| -75.00% | -55.00% | ||
| -100.00% | -80.00% |
| (1) | The retuon the notes cannot exceed the hypothetical Maximum Return. |
| (2) | The hypothetical Initial Price of |
| (3) | This is the hypothetical Buffer Price of the Worst Performing Underlying. |
PS-4
The following examples indicate how the Payment at Maturity would be calculated with respect to a hypothetical
Example 1: The Percentage Changeof the Worst Performing Underlying Is 50.00%.
The Final Price of the Worst Performing Underlying is
=
=
Example 1 shows that the retuon the notes will not exceed the Maximum Return, regardless of the extent to which the price of the Worst Performing Underlying increases.
Example 2: The Percentage Changeof the Worst Performing Underlying Is 2.00%.
The Final Price of the Worst Performing Underlying is
=
=
Example 2 shows that the notes provide a leveraged retuif the positive Percentage Change of the Worst Performing Underlying multiplied by the Upside Participation Rate does not exceed the Maximum Return.
Example 3: The Percentage Changeof the Worst Performing Underlying Is -5.00%.
The Final Price of the Worst Performing Underlying is
Payment at Maturity =
Example 3 shows that the Payment at Maturity will equal the principal amount if the Final Price of the Worst Performing Underlying is at or below its Initial Price but at or above its Buffer Price, although the price of the Worst Performing Underlying has decreased moderately.
Example 4: The Percentage Change of the Worst Performing Underlying Is -75.00%.
The Final Price the Worst Performing Underlying is
=
=
Example 4 shows that you are exposed on a 1-to-1 basis to any decrease in the price of the Worst Performing Underlying from its Initial Price by more than its Buffer Amount. You may lose up to 80% of the principal amount.
PS-5
INVESTOR CONSIDERATIONS
The notes are not appropriate for all investors. The notes may be an appropriate investment for you if:
| · | You believe that the price of the Worst Performing Underlying will increase moderately from its Initial Price to its Final Price. |
| · | You are willing to make an investment that is exposed to the negative performance of the Worst Performing Underlying on a 1-to-1 basis for each percentage point that its Final Price is less than its Buffer Price. |
| · | You are willing to accept that the retuon the notes will be limited to the Maximum Return. |
| · | You do not seek current income over the term of the notes. |
| · | You understand that the retuon the notes will depend solely on the performance of the Worst Performing Underlying on the Final Valuation Date and consequently, the notes are riskier than alternative investments linked to only one of the Funds or linked to a basket composed of the Funds. |
| · | You are willing to forgo dividends or other distributions paid on the Funds or securities held by the Funds. |
| · | You are willing to hold the notes to maturity and you do not seek an investment for which there will be an active secondary market. |
| · | You are willing to assume the credit risk of the Bank for any payment under the notes. |
The notes may not be an appropriate investment for you if:
| · | You believe that the price of the Worst Performing Underlying will decrease from its Initial Price to its Final Price or that it will not increase sufficiently to provide you with your desired return. |
| · | You are unwilling to make an investment that is exposed to the negative performance of the Worst Performing Underlying on a 1-to-1 basis for each percentage point that its Final Price is less than its Buffer Price. |
| · | You seek full payment of the principal amount of the notes at maturity. |
| · | You seek an uncapped retuon your investment. |
| · | You seek current income over the term of the notes. |
| · | You seek exposure to a basket composed of the Funds or a similar investment in which the overall retuis based on a blend of the performances of the Funds, rather than solely on the Worst Performing Underlying. |
| · | You want to receive dividends or other distributions paid on the Funds or securities held by the Funds. |
| · | You are unable or unwilling to hold the notes to maturity or you seek an investment for which there will be an active secondary market. |
| · | You are not willing to assume the credit risk of the Bank for any payment under the notes. |
The investor suitability considerations identified above are not exhaustive. Whether or not the notes are a suitable investment for you will depend on your individual circumstances and you should reach an investment decision only after you and your investment, legal, tax, accounting and other advisors have carefully considered the suitability of an investment in the notes in light of your particular circumstances. You should also review ''Additional Risk Factors'' below for risks related to the notes.
PS-6
ADDITIONAL RISK FACTORS
An investment in the notes involves significant risks. In addition to the following risks included in this pricing supplement, we urge you to read "Risk Factors" beginning on page S-1 of the accompanying underlying supplement, page S-1 of the prospectus supplement and page 1 of the prospectus.
You should understand the risks of investing in the notes and should reach an investment decision only after careful consideration, with your advisers, of the suitability of the notes in light of your particular financial circumstances and the information set forth in this pricing supplement and the accompanying underlying supplement, the prospectus supplement and the prospectus.
Structure Risks
You may lose some or a substantial portion of the principal amount of your notes.
The notes do not guarantee full retuof principal. The repayment of any principal on the notes at maturity depends on the Final Price of the Worst Performing Underlying. The Bank will only repay you the full principal amount of your notes if the Final Price of the Worst Performing Underlying is equal to or greater than its Buffer Price. If the Final Price of the Worst Performing Underlying is less than its Buffer Price, you will be exposed on a 1-to-1 basis to any decrease in the price of the Worst Performing Underlying by more than 20%. You may lose up to 80% of your principal amount.
The potential retuon your notes will be limited by the Maximum Return.
Your ability to participate in any increase in the price of the Worst Performing Underlying will be limited because of the Maximum Return. The Maximum Retuwill limit the payment you may receive at maturity, no matter how much the price of the Worst Performing Underlying may rise by more than 26.40% of its Initial Price over the term of the notes (assuming a Maximum Retuof 33.00%).
The notes are subject to the full risks of the Worst Performing Underlying and will be negatively affected if any Fund performs poorly, even if the other Fund performs favorably.
You are subject to the full risks of the Worst Performing Underlying. If the Worst Performing Underlying performs poorly, you will be negatively affected, even if the other Fund performs favorably. The notes are not linked to a basket composed of the Funds, where the better performance of one Fund could offset the poor performance of the others. Instead, you are subject to the full risks of the Worst Performing Underlying on each Coupon Determination Date. As a result, the notes are riskier than an alternative investment linked to only one of the Funds or linked to a basket composed of the Funds. You should not invest in the notes unless you understand and are willing to accept the full downside risks of the Worst Performing Underlying.
The payment on the notes is not linked to the price of the Worst Performing Underlying at any time other than the Final Valuation Date.
The payment on the notes will be based on the Closing Price of the Worst Performing Underlying on the Final Valuation Date. Therefore, if the Final Price of the Worst Performing Underlying declined as of the Final Valuation Date below its Buffer Price, the Payment at Maturity may be significantly less than it would otherwise have been had the Payment at Maturity been linked to the Closing Price of the Worst Performing Underlying on dates other than the Final Valuation Date. Although the actual price of the Worst Performing Underlying at other times during the term of the notes may be higher than its Closing Price on the Final Valuation Date, the payment on the notes will not benefit from the Closing Price of the Worst Performing Underlying at any time other than the Final Valuation Date.
The notes do not bear interest, and the retuon the notes may be less than the retuon a conventional debt security of comparable maturity.
You will not receive any interest payments on the notes. As a result, even if the Payment at Maturity exceeds the principal amount of your notes, the overall retuon your notes may be less than you would have earned by investing in a conventional debt security of comparable maturity that bears interest at a prevailing market rate.
PS-7
Reference Asset Risks
The performance of a Fund may not correlate with the performance of its Underlying Index as well as the net asset value per share of the Fund, especially during periods of market volatility.
Although a Fund is designed to track the performance of its Underlying Index, the performance of the Fund and that of its Underlying Index generally will vary due to, for example, transaction costs, management fees, certain corporate actions, and timing variances. Moreover, it is also possible that the performance of a Fund may not fully replicate or may, in certain circumstances, diverge significantly from the performance of its Underlying Index. This could be due to, for example, the Fund not holding all or substantially all of the underlying assets included in the Underlying Index and/or holding assets that are not included in the Underlying Index, the temporary unavailability of certain securities in the secondary market, the performance of any derivative instruments held by the Fund, differences in trading hours between the Fund (or the underlying assets held by the Fund) and the Underlying Index, or due to other circumstances. This variation in performance is called the "tracking error," and, at times, the tracking error may be significant.
In addition, because the shares of a Fund are traded on a securities exchange and are subject to market supply and investor demand, the market price of one share of the Fund may differ from its net asset value per share; shares of the Fund may trade at, above, or below its net asset value per share.
During periods of market volatility, securities held by a Fund may be unavailable in the secondary market, market participants may be unable to calculate accurately the net asset value per share of the Fund and the liquidity of the Fund may be adversely affected. This kind of market volatility may also disrupt the ability of market participants to create and redeem shares of the Fund. Further, market volatility may adversely affect, sometimes materially, the prices at which market participants are willing to buy and sell shares of the Fund. As a result, under these circumstances, the market value of shares of the Fund may vary substantially from the net asset value per share of the Fund.
For the foregoing reasons, the performance of a Fund may not match the performance of its Underlying Index over the same period. Because of this variance, the retuon the notes, to the extent dependent on the performance of the Fund, may not be the same as an investment directly in the securities, commodities, or other assets included in the Underlying Index or the same as a debt security with a retulinked to the performance of the Underlying Index.
Conflicts of Interest
Certain business, trading and hedging activities ofus, the agent, and our other affiliates may create conflicts with your interests and could potentially adversely affect the value of the notes.
We, the agent, and our other affiliates may engage in trading and other business activities related to a Fund or any securities held by a Fund that are not for your account or on your behalf. We, the agent, and our other affiliates also may issue or underwrite other financial instruments with returns based upon a Fund. These activities may present a conflict of interest between your interest in the notes and the interests that we, the agent, and our other affiliates may have in our or their proprietary accounts, in facilitating transactions, including block trades, for our or their other customers, and in accounts under our or their management. These trading and other business activities, if they adversely affect the price of any Fund or secondary trading in your notes, could be adverse to your interests as a beneficial owner of the notes.
Moreover, we, the agent and our other affiliates play a variety of roles in connection with the issuance of the notes, including hedging our obligations under the notes and making the assumptions and inputs used to determine the pricing of the notes and the initial estimated value of the notes when the terms of the notes are set. We expect to hedge our obligations under the notes through the agent, one of our other affiliates, and/or another unaffiliated counterparty, which may include any dealer from which you purchase the notes. Any of these hedging activities may adversely affect the price of a Fund and therefore the market value of the notes and the amount you will receive, if any, on the notes. In connection with such activities, the economic interests of us, the agent, and our other affiliates may be adverse to your interests as an investor in the notes. Any of these activities may adversely affect the value of the notes. In addition, because hedging our obligations entails risk and may be influenced by market forces beyond our control, this hedging activity may result in a profit that is more or less than expected, or it may result in a loss. We, the agent, one or more of our other affiliates or any unaffiliated counterparty will retain any profits realized in hedging our obligations under the notes even if investors do not receive a favorable investment retuunder the terms of the notes or in any secondary market transaction. Any profit in connection with such hedging activities will
PS-8
be in addition to any other compensation that we, the agent, our other affiliates or any unaffiliated counterparty receive for the sale of the notes, which creates an additional incentive to sell the notes to you. We, the agent, our other affiliates or any unaffiliated counterparty will have no obligation to take, refrain from taking or cease taking any action with respect to these transactions based on the potential effect on an investor in the notes.
There are potential conflicts of interest between you and the calculation agent.
The calculation agent will determine, among other things, the amount of payment on the notes. The calculation agent will exercise its judgment when performing its functions. For example, the calculation agent will determine whether a Market Disruption Event affecting a Fund has occurred on the scheduled Final Valuation Date, and make a good faith estimate in its sole discretion of the Final Price for an affected Fund if the Final Valuation Date is postponed to the last possible day, and make certain anti-dilution adjustments with respect to a Fund if certain corporate events occur. See "Certain Terms of the Notes-Valuation Dates- For Notes Where the Reference Asset Consists of Multiple Funds" and "-Anti-Dilution Adjustments" in the underlying supplement. This determination may, in turn, depend on the calculation agent's judgment as to whether the event has materially interfered with our ability or the ability of one of our affiliates to unwind our hedge positions. The calculation agent will be required to carry out its duties in good faith and use its reasonable judgment. However, because we will be the calculation agent, potential conflicts of interest could arise. None of us, CIBCWM or any of our other affiliates will have any obligation to consider your interests as a holder of the notes in taking any action that might affect the value of your notes.
Tax Risks
The tax treatment of the notes is uncertain.
Significant aspects of the tax treatment of the notes are uncertain. You should consult your tax advisor about your own tax situation. See "United States Federal Income Tax Considerations" and "Certain Canadian Federal Income Tax Considerations" in this pricing supplement, "Material
General Risks
Payment on the notes is subject to our credit risk, and actual or perceived changes in our creditworthiness are expected to affect the value of the notes.
The notes are our senior unsecured debt obligations and are not, either directly or indirectly, an obligation of any third party. As further described in the accompanying prospectus and prospectus supplement, the notes will rank on par with all of our other unsecured and unsubordinated debt obligations, except such obligations as may be preferred by operation of law. Any payment to be made on the notes depends on our ability to satisfy our obligations as they come due. As a result, the actual and perceived creditworthiness of us may affect the market value of the notes and, in the event we were to default on our obligations, you may not receive the amounts owed to you under the terms of the notes. If we default on our obligations under the notes, your investment would be at risk and you could lose some or all of your investment. See "Description of Senior Debt Securities-Events of Default" in the accompanying prospectus.
The Bank's initial estimated value of the notes will be lower than the initial issue price (price to public) of the notes.
The initial issue price of the notes will exceed the Bank's initial estimated value because costs associated with selling and structuring the notes, as well as hedging the notes, are included in the initial issue price of the notes. See "The Bank's Estimated Value of the Notes" in this pricing supplement.
The Bank's initial estimated value does not represent future values of the notes and may differ from others' estimates.
The Bank's initial estimated value of the notes is only an estimate, which will be determined by reference to the Bank's internal pricing models when the terms of the notes are set. This estimated value will be based on market conditions and other relevant factors existing at that time, the Bank's internal funding rate on the Trade Date and the Bank's assumptions about market parameters, which can include volatility, dividend rates, interest rates and other factors. Different pricing models and assumptions could provide valuations for the notes that are greater or less than the Bank's initial estimated value. In addition, market conditions and other relevant factors in the future may change, and any assumptions may prove to be incorrect. On future dates, the market value of the notes could change
PS-9
significantly based on, among other things, changes in market conditions, including the prices of the Funds, the Bank's creditworthiness, interest rate movements and other relevant factors, which may impact the price at which the agent or any other party would be willing to buy the notes from you in any secondary market transactions. The Bank's initial estimated value does not represent a minimum price at which the agent or any other party would be willing to buy the notes in any secondary market (if any exists) at any time. See "The Bank's Estimated Value of the Notes" in this pricing supplement.
The Bank's initial estimated value of the notes will not be determined by reference to credit spreads for our conventional fixed-rate debt.
The internal funding rate to be used in the determination of the Bank's initial estimated value of the notes generally represents a discount from the credit spreads for our conventional fixed-rate debt. The discount is based on, among other things, our view of the funding value of the notes as well as the higher issuance, operational and ongoing liability management costs of the notes in comparison to those costs for our conventional fixed-rate debt. If the Bank were to use the interest rate implied by our conventional fixed-rate debt, we would expect the economic terms of the notes to be more favorable to you. Consequently, our use of an internal funding rate for market-linked notes would have an adverse effect on the economic terms of the notes, the initial estimated value of the notes on the Trade Date, and any secondary market prices of the notes. See "The Bank's Estimated Value of the Notes" in this pricing supplement.
The notes will not be listed on any securities exchange and we do not expect a trading market for the notes to develop.
The notes will not be listed on any securities exchange. Although CIBCWM and/or its affiliates may purchase the notes from holders, they are not obligated to do so and are not required to make a market for the notes. There can be no assurance that a secondary market will develop for the notes. Because we do not expect that any market makers will participate in a secondary market for the notes, the price at which you may be able to sell your notes is likely to depend on the price, if any, at which CIBCWM and/or its affiliates are willing to buy your notes.
If a secondary market does exist, it may be limited. Accordingly, there may be a limited number of buyers if you decide to sell your notes prior to maturity. This may affect the price you receive upon such sale. Consequently, you should be willing to hold the notes to maturity.
PS-10
INFORMATION REGARDING THE FUNDS
The information below are brief descriptions of each Fund. We have derived the following information from publicly available documents. We have not independently verified the accuracy or completeness of the following information. Information provided to or filed with the
The SPDR®
The DIA seeks to replicate, before fees and expenses, the price and yield performance of the Dow Jones Industrial Average®, which is composed of 30 "blue-chip"
Information provided to or filed with the
The SPDR® S&P 500®
The SPY seeks to provide investment results that, before expenses, correspond generally to the price and yield performance of the S&P 500® Index, which is designed to measure the performance of large-capitalization segment of the
Information provided to or filed with the
PS-11
Historical Performance of the Funds
The following graphs set forth daily Closing Prices of the Funds for the period from
Historical Performance of DIA
Source: Bloomberg
Historical Performance of SPY
Source: Bloomberg
PS-12
The following discussion is a brief summary of the material
The
The expected characterization of the notes is not binding on the
With respect to the discussion in the underlying supplement regarding "dividend equivalent" payments, the
You should consult your tax advisor as to the tax consequences of such characterization and any possible alternative characterizations of the notes for
PS-13
CERTAIN CANADIAN FEDERAL INCOME TAX CONSIDERATIONS
In the opinion of
This summary assumes that no amount paid or payable to a holder described herein will be the deduction component of a "hybrid mismatch arrangement" under which the payment arises within the meaning of the rules in the Canadian Tax Act with respect to "hybrid mismatch arrangements" (the "Hybrid Mismatch Rules"). Investors should note that the Hybrid Mismatch Rules are highly complex and there remains significant uncertainty as to their interpretation and application.
This summary is supplemental to and should be read together with the description of material Canadian federal income tax considerations relevant to a Non-Resident Holder owning notes under "Material Income Tax Consequences-Canadian Taxation" in the accompanying prospectus and a Non-Resident Holder should carefully read that description as well.
This summary is of a general nature only and is not intended to be, nor should it be construed to be, legal or tax advice to any particular Non-Resident Holder. Non-Resident Holders are advised to consult with their own tax advisors with respect to their particular circumstances.
Based on Canadian tax counsel's understanding of the
Non-Resident Holders should consult their own advisors regarding the consequences to them of a disposition of the notes to a person with whom they are not dealing at arm's length for purposes of the Canadian Tax Act.
PS-14
SUPPLEMENTAL PLAN OF DISTRIBUTION (CONFLICTS OF INTEREST)
CIBCWM will purchase the notes from CIBC at the price to public less the underwriting discount set forth on the cover page of this pricing supplement for distribution to other registered broker-dealers, or will offer the notes directly to investors. CIBCWM or other registered broker-dealers will offer the notes at the price to public set forth on the cover page of this pricing supplement. CIBCWM may receive a commission of up to
CIBCWM is our affiliate, and is deemed to have a conflict of interest under FINRA Rule 5121. In accordance with FINRA Rule 5121, CIBCWM may not make sales in this offering to any of its discretionary accounts without the prior written approval of the customer.
We expect to deliver the notes against payment therefor in
The Bank may use this pricing supplement in the initial sale of the notes. In addition, CIBCWM or another of the Bank's affiliates may use this pricing supplement in market-making transactions in any notes after their initial sale. Unless CIBCWM or we inform you otherwise in the confirmation of sale, this pricing supplement is being used by CIBCWM in a market-making transaction.
While CIBCWM may make markets in the notes, it is under no obligation to do so and may discontinue any market-making activities at any time without notice. The price that it makes available from time to time after the Original Issue Date at which it would be willing to repurchase the notes will generally reflect its estimate of their value. That estimated value will be based upon a variety of factors, including then prevailing market conditions, our creditworthiness and transaction costs. However, for a period of approximately three months after the Trade Date, the price at which CIBCWM may repurchase the notes is expected to be higher than their estimated value at that time. This is because, at the beginning of this period, that price will not include certain costs that were included in the initial issue price, particularly our hedging costs and profits. As the period continues, these costs are expected to be gradually included in the price that CIBCWM would be willing to pay, and the difference between that price and CIBCWM's estimate of the value of the notes will decrease over time until the end of this period. After this period, if CIBCWM continues to make a market in the notes, the prices that it would pay for them are expected to reflect its estimated value, as well as customary bid-ask spreads for similar trades. In addition, the value of the notes shown on your account statement may not be identical to the price at which CIBCWM would be willing to purchase the notes at that time, and could be lower than CIBCWM's price. See the section titled "Supplemental Plan of Distribution (Conflicts of Interest)" in the accompanying prospectus supplement.
The price at which you purchase the notes includes costs that the Bank or its affiliates expect to incur and profits that the Bank or its affiliates expect to realize in connection with hedging activities related to the notes. These costs and profits will likely reduce the secondary market price, if any secondary market develops, for the notes. As a result, you may experience an immediate and substantial decline in the market value of your notes on the Original Issue Date.
PS-15
THE BANK'S ESTIMATED VALUE OF THE NOTES
The Bank's initial estimated value of the notes set forth on the cover of this pricing supplement is equal to the sum of the values of the following hypothetical components: (1) a fixed-income debt component with the same maturity as the notes, valued using our internal funding rate for structured debt described below, and (2) the derivative or derivatives underlying the economic terms of the notes. The Bank's initial estimated value does not represent a minimum price at which CIBCWM or any other person would be willing to buy your notes in any secondary market (if any exists) at any time. The internal funding rate used in the determination of the Bank's initial estimated value generally represents a discount from the credit spreads for our conventional fixed-rate debt. The discount is based on, among other things, our view of the funding value of the notes as well as the higher issuance, operational and ongoing liability management costs of the notes in comparison to those costs for our conventional fixed-rate debt. For additional information, see "
The Bank's initial estimated value of the notes will be lower than the initial issue price of the notes because costs associated with selling, structuring and hedging the notes are included in the initial issue price of the notes. These costs include the selling commissions paid to CIBCWM and other affiliated or unaffiliated dealers, the projected profits that our hedge counterparties, which may include our affiliates, expect to realize for assuming risks inherent in hedging our obligations under the notes and the estimated cost of hedging our obligations under the notes. Because hedging our obligations entails risk and may be influenced by market forces beyond our control, this hedging may result in a profit that is more or less than expected, or it may result in a loss. We or one or more of our affiliates will retain any profits realized in hedging our obligations under the notes. See "
PS-16
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CIBC -
Proxy Statement (Form DEF 14A)
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