The Bank of Nova Scotia filed a free writing prospectus on November 10, 2026, disclosing terms for principal-at-risk market linked securities linked to the lowest performing of Alphabet Inc. Class C shares, Micron Technology common stock, and NVIDIA Corporation common stock, with a stated maturity of November 16, 2029.

Key Highlights

  • Face amount: $1,000 per security, priced at $1,000 original offering price, with denominations in multiples of $1,000.
  • Auto-call feature: If the lowest performing underlying stock closes at or above 80.00% of its starting price on November 18, 2027, the securities are automatically called and investors receive the face amount plus a call premium of 40.00% ($400.00 per $1,000).
  • Upside participation rate: At least 265.00%, to be determined on the pricing date of November 13, 2026.
  • Threshold price: 50.00% of each underlying stock's starting price; if the lowest performer falls below this level at maturity, investors face full downside exposure and may lose more than 50.00%, and possibly all, of their principal.
  • Estimated value: If priced on the filing date, the Bank estimated the securities' value at between $896.81 (89.681%) and $926.81 (92.681%) per security.
  • Agent discounts: Wells Fargo Securities, LLC will receive a discount of up to 2.575%; dealers including Wells Fargo Advisors, LLC may receive a selling concession of up to 2.00% and a distribution expense fee of 0.075%.
  • CUSIP / ISIN: 06419UDZ5 / US06419UDZ57.

Structure and Payout Terms for the Bank of Nova Scotia's Lowest-Performer Linked Securities

According to the filing, The Bank of Nova Scotia is offering equity linked securities under its Senior Note Program, Series A, registered under Registration No. 333-298611. The securities are linked to the lowest performing of three underlying stocks: Alphabet Inc. Class C (Bloomberg Ticker: GOOG), Micron Technology, Inc. (Bloomberg Ticker: MU), and NVIDIA Corporation (Bloomberg Ticker: NVDA). The pricing date is set for November 13, 2026, and the issue date for November 18, 2026, both subject to change.

The filing describes three possible maturity payment scenarios if the securities are not automatically called. If the ending price of the lowest performing underlying stock exceeds its starting price, the investor receives $1,000 plus $1,000 multiplied by the underlying stock return and the upside participation rate (at least 265.00%). If the ending price is at or below the starting price but at or above the threshold price (50.00% of starting price), the investor receives $1,000 plus the absolute value of the underlying stock return. If the ending price falls below the threshold price, the investor receives $1,000 plus the negative underlying stock return, meaning direct downside exposure with no principal protection.

The Bank disclosed that no periodic interest will be paid on the securities and that the calculation agent is Scotia Capital Inc., an affiliate of the Bank. The filing also noted that the inclusion of dealer spread and projected hedging profit in the original offering price "is likely to adversely affect secondary market prices," and that the Bank's estimated value will be lower than the original offering price. The filing states that the securities are "not a bank deposit and not insured or guaranteed by the FDIC or any other governmental agency."

What Was Disclosed

The Bank of Nova Scotia filed a term sheet for principal-at-risk auto-callable securities linked to the lowest performing of three equity underlyings, disclosing payout mechanics, an auto-call premium of 40.00%, a minimum upside participation rate of 265.00%, and an estimated value range of $896.81 to $926.81 per $1,000 security.