The Bank of Nova Scotia filed a free writing prospectus on October 27, 2026, disclosing the term sheet for a principal-at-risk structured note linked to the lowest performing of Micron Technology common stock and Space Exploration Technologies Corp. Class A common stock, with a stated maturity date of November 9, 2028.

Key Highlights

  • Underlying stocks: The note is linked to Micron Technology, Inc. (Bloomberg Ticker: MU) and the Class A common stock of Space Exploration Technologies Corp. (Bloomberg Ticker: SPCX), with payoff determined by the lowest performing of the two.
  • Face amount: $1,000 per security, priced in denominations of $1,000 and integral multiples thereof.
  • Call premium: At least 36.00% of face amount, or at least $360.00 per $1,000 security, to be finalized on the pricing date of November 6, 2026.
  • Call threshold: 85% of each Underlying Stock's starting price; threshold price for downside protection set at 50% of starting price.
  • Upside participation rate: 200% if the securities are not called and the lowest performing stock finishes above its starting price.
  • Estimated value at pricing: Between $910.11 and $940.11 per $1,000 security, according to the filing.
  • Agent discount: Wells Fargo Securities, LLC will receive a discount of up to 2.325%; Wells Fargo Advisors, LLC may receive a selling concession of up to 1.75% plus a distribution expense fee of 0.075%.

Structure and Payout Terms of the Bank of Nova Scotia Equity Linked Note

The Bank of Nova Scotia, operating through its Senior Note Program Series A, is offering these Market Linked Securities as part of a registered program under Registration No. 333-298611. The bank is a Canadian chartered bank and the issuer of record, with Scotia Capital Inc., an affiliate of the bank, serving as calculation agent. The securities carry a CUSIP of 06419TX52 and ISIN US06419TX529.

According to the filing, the automatic call feature operates as follows: if the stock closing price of the lowest performing Underlying Stock on November 12, 2027 (the call date, subject to postponement) is greater than or equal to 85% of its starting price, the securities are called automatically. Investors then receive the face amount plus the call premium on the call settlement date, which falls three business days after the call date. The filing notes that if the securities are automatically called, "your return will be limited to the call premium" and investors will not participate in any further appreciation of either underlying stock.

If the securities are not automatically called, the maturity payment on November 9, 2028 depends on where the lowest performing stock closes relative to its starting price on the final calculation day of November 6, 2028. A finish above the starting price yields the face amount plus 200% leveraged participation in that stock's return. A finish below the starting price but at or above the 50% threshold price returns only the face amount. A finish below the 50% threshold price exposes investors to the full percentage decline of the lowest performing stock from its starting price, meaning investors "will lose more than 50%, and possibly all, of the face amount," according to the filing.

What Was Disclosed

The Bank of Nova Scotia disclosed a term sheet for a two-year equity linked structured note tied to Micron Technology and Space Exploration Technologies Corp., offering a conditional call premium of at least 36.00%, 200% upside participation if not called, and full principal risk if the lowest performing stock falls below 50% of its starting price at maturity.