The Bank of Nova Scotia filed a free writing prospectus on October 30, 2026, disclosing the term sheet for Principal at Risk Securities linked to the lowest performing of Broadcom Inc., Alphabet Inc. Class A common stock, and Netflix, Inc., with a stated maturity date of November 23, 2029.

Key Highlights

  • Face amount: $1,000 per security, offered in denominations of $1,000 and any integral multiple thereof.
  • Call premium: At least 28.25% of the face amount, or at least $282.50 per $1,000 face amount, to be determined on the pricing date of November 19, 2026.
  • Upside participation rate: 300.00% applied to the underlying stock return of the lowest performing underlying stock at maturity, if not automatically called and ending price exceeds starting price.
  • Threshold price: 50.00% of each underlying stock's starting price; a breach results in full downside exposure and potential loss of more than 50.00%, and possibly all, of the face amount.
  • Estimated value at pricing: Between $880.00 (88.000%) and $909.37 (90.937%) per security, according to the filing.
  • Call threshold price: 90.00% of each underlying stock's starting price, with one call date of November 24, 2027.
  • Dealer discount: Wells Fargo Securities, LLC will receive a discount of up to 2.575%; selling concession of up to 2.00% for dealers including Wells Fargo Advisors, LLC, plus a distribution expense fee of 0.075% for that firm.

Structure and Payout Mechanics of the Bank of Nova Scotia's Equity-Linked Securities

According to the filing, the securities are issued under The Bank of Nova Scotia's Senior Note Program, Series A, and are linked to the lowest performing of three underlying stocks: the common stock of Broadcom Inc. (Bloomberg Ticker: AVGO), the Class A common stock of Alphabet Inc. (Bloomberg Ticker: GOOGL), and the common stock of Netflix, Inc. (Bloomberg Ticker: NFLX). The pricing date is scheduled for November 19, 2026, with an issue date of November 24, 2026. The CUSIP is 06419TV39 and the ISIN is US06419TV390. Scotia Capital (USA) Inc. and Wells Fargo Securities, LLC are named as agents.

The filing describes an automatic call feature triggered if the stock closing price of the lowest performing underlying stock on November 24, 2027 is greater than or equal to 90.00% of its starting price. If called, investors receive the face amount plus the call premium, and, as the filing states, "will not participate in any appreciation of the lowest performing Underlying Stock, which may be significant." If not called, the maturity payment depends on three scenarios tied to the ending price of the lowest performing underlying stock relative to its starting price and threshold price of 50.00% of starting price. If the ending price falls below the threshold price, investors bear full downside exposure and may lose more than 50.00%, and possibly all, of the face amount.

The filing notes that the bank's estimated value of the securities at pricing would be between $880.00 and $909.37 per security, which is lower than the original offering price of $1,000. The filing attributes this difference in part to "the inclusion of dealer spread and projected profit from hedging in the original offering price." The calculation agent is Scotia Capital Inc., an affiliate of the bank. The filing directs investors to the preliminary pricing supplement for full risk factors, tax consequences, and additional terms.

What Was Disclosed

The Bank of Nova Scotia filed a term sheet for auto-callable, principal-at-risk securities due November 23, 2029, linked to the worst performer among AVGO, GOOGL, and NFLX, with a minimum call premium of 28.25%, a 300.00% upside participation rate, and a 50.00% threshold price protecting against full downside only above that level.