Blueprint
Filed pursuant to Rule
424(b)(3)
File No.
333-223940
TEUCRIUM SOYBEAN
FUND
Supplement
dated October 10, 2018
to
Prospectus dated April 30,
2018
This supplement updates the
prospectus, dated April 30, 2018, for each of the funds listed
above, with all of the following information unless otherwise noted
below. The supplement should be read in its entirety and kept
together with your prospectus for future reference. Capitalized
terms and certain other terms used in this supplement, unless
otherwise defined in this supplement, have the meanings assigned to
them in the applicable prospectus.
Effective September 17, 2018, Sal
Gilbertie replaced Dale Riker as Chief Executive Officer and
Secretary of Teucrium Trading, LLC (“Teucrium” or the
“Sponsor”), sponsor of the funds, each a series of the
Teucrium Commodity Trust (the
“Trust”).
Effective September 13, 2018,
Barbara Riker resigned as the Chief Financial Officer, Chief
Accounting Officer and Chief Compliance Officer of
Teucrium.
Effective September 17, 2018, Corey
Mullen-Rusin was appointed Chief Financial Officer, Chief
Accounting Officer and Chief Compliance Officer of
Teucrium.
Effective October 10, 2018,
Steve
Kahler resumed his role as Chief Operating Officer of
Teucrium.
Changes to Each Prospectus
The section of
the prospectus entitled “The Sponsor is leanly staffed and
relies heavily on key personnel to manage trading activities”
is hereby deleted and replaced with the
following:
The Sponsor is leanly staffed and relies heavily on key personnel
to manage trading activities.
In managing and directing the
day-to-day activities and affairs of the Fund, the Sponsor relies
almost entirely on a small number of individuals, including Mr. Sal
Gilbertie, Mr. Steve Kahler and Ms. Corey Mullen-Rusin. If Mr.
Gilbertie, Mr. Kahler or Ms. Mullen-Rusin were to leave or be
unable to carry out their present responsibilities and were not
replaced, it may have an adverse effect on the management of the
Fund. To the extent that the Sponsor establishes additional
commodity pools, even greater demands will be placed on these
individuals.
The section of
the prospectus entitled “Management of the Sponsor,”
beginning with the second paragraph, is hereby deleted and replaced
with the following:
The Officers of the Sponsor, one of
whom is also a Class A member of the Sponsor, are the
following:
Sal Gilbertie has
been the Chief Executive Officer and Secretary of the Sponsor since
September 17, 2018, President of the Sponsor since its inception
and its Chief Investment Officer since September 2011. Mr.
Gilbertie was approved by the NFA as a principal of the Sponsor on
September 23, 2009, and was registered as an associated person of
the Sponsor on November 10, 2009. He maintains his main
business office at 65 Adams Road, Easton, Connecticut 06612.
Effective July 16, 2012, Mr. Gilbertie was registered with the NFA
as the Branch Manager for this location. Since October 18,
2010, Mr. Gilbertie has been a registered representative of the
Distributor under the terms of the Securities Activities and
Services Agreement (“SASA”) between the Sponsor and the
Distributor. Additional information regarding the SASA can be
found in the section of this disclosure document entitled
“Plan of Distribution.” From October 2005 until
December 2009, Mr. Gilbertie was employed by Newedge USA, LLC, an
FCM and broker-dealer registered with the CFTC and the SEC,
respectively, where he headed the Renewable Fuels/Energy
Derivatives OTC Execution Desk and was an active futures contract
and over-the-counter derivatives trader and market maker in
multiple classes of commodities. (Between January 2008 and
October 2008, he also held a comparable position with Newedge
Financial, Inc., an FCM and an affiliate of Newedge USA,
LLC.) From October 1998 until October 2005, Mr. Gilbertie was
principal and co-founder of Cambial Asset Management, LLC, an
adviser to two private funds that focused on equity options, and
Cambial Financing Dynamics, a private boutique investment
bank. While at Cambial Asset Management, LLC and Cambial
Financing Dynamics, Mr. Gilbertie served as principal and managed
the day-to-day activities of the business and the portfolio of both
companies. Mr. Gilbertie is 58 years old.
Corey Mullen-Rusin,
Chief Financial Officer, Chief Accounting Officer and Chief
Compliance Officer, began working for the Sponsor on August 16,
2011. She became the Chief Financial Officer, Chief Accounting
Officer and Chief Compliance Officer on September 17, 2018 and has
primary responsibility for the financial management, compliance and
reporting of the Sponsor and is in charge of its books of account
and accounting records, and its accounting procedures. She
maintains her main business office at 115 Christina Landing Drive
Unit 2004, Wilmington, DE 19801. Ms. Mullen-Rusin worked directly
with the former Chief Financial Officer, Chief Accounting Officer
and Chief Compliance Officer at the Sponsor for the past seven
years. She was responsible for all aspects of financial planning,
financial operations, and financial reporting for the Trust and the
Sponsor. Additionally, Ms. Mullen-Rusin assisted in developing,
instituting, and monitoring the effectiveness of processes and
procedures to comply with all regulatory agency requirements. Ms.
Mullen-Rusin graduated from Boston College with a Bachelor of Arts
and Science in Communications in 2009, where she was a four-year
scholarship player on the NCAA Division I Women’s Basketball
team. In 2017, she earned a Master of Business Administration from
Nichols College. Ms. Mullen-Rusin is 31 years
old.
Steve Kahler, Chief
Operating Officer, began working for the Sponsor in November 2011
as Managing Director of Trade Operations. He worked for the Sponsor
from November 2011 through September 6, 2018 as Managing Director
of Trade Operations and as Chief Operating Officer from May 24,
2012 through September 6, 2018. Mr. Kahler resumed his role as
Chief Operating Officer subject to a majority vote of the Class A
Members on October 10, 2018 and will continue to have primary
responsibility for the Trade Operations for the Teucrium Funds. Mr.
Kahler is primarily responsible for making trading and investment
decisions for the Fund and other Teucrium Funds, and for directing
Fund and other Teucrium Fund trades for execution. He maintains his
main business office at 13520 Excelsior Blvd., Minnetonka, MN
55345. Mr. Kahler was a registered representative of the
Distributor under the terms of the Securities Activities and
Services Agreement (“SASA”) between the Sponsor and the
Distributor from January 18, 2012 to September 14, 2018. Additional
information regarding the SASA can be found in the section of each
Fund's prospectus entitled “Plan of Distribution.” Mr.
Kahler previously worked for Cargill Inc., an international
producer and marketer of food, agricultural, financial and
industrial products and services, from April 2006 until November
2011 in the Energy Division as Senior Petroleum Trader. In October
2006, and while employed at Cargill Inc., Mr. Kahler was approved
as an Associated Person of Cargill Commodity Services Inc., a
commodity trading affiliate of Cargill Inc., from September 13,
2006 to November 9, 2011. Mr. Kahler graduated from the University
of Minnesota with a Bachelors of Agricultural Business
Administration in 1992 and is 51 years old.
Mr. Gilbertie is an individual
“principal,” as that term is defined in CFTC Rule 3.1,
of the Sponsor. Mr. Gilbertie is a principal due to his positions
and/or due to his ownership interest in the Sponsor. Ms.
Mullen-Rusin and Mr. Kahler will submit applications to the CFTC to
be registered as principals. Beneficial ownership interest of the
principals, if any, is shown under the section entitled
“Security Ownership of Principal Shareholders and
Management” below and any of the principals may acquire
beneficial interests in the Fund in the future. GFI Group LLC is a
principal for the Sponsor under CFTC Rules due to its ownership of
certain non-voting securities of the Sponsor.
The second
paragraph of the section of the prospectus entitled “The
Sponsor Has Conflicts of Interest” is hereby deleted and
replaced with the following:
The Sponsor’s principals,
officers and employees, do not devote their time exclusively to the
Fund. Under the governing documents of the Sponsor, Mr. Sal
Gilbertie in his capacity as Chief Executive Officer, President and
Chief Investment Officer and Secretary of the Sponsor, is obligated
to use commercially reasonable efforts to manage the Sponsor,
devote such amount of time to the Sponsor as would be consistent
with their roles in similarly placed commodity pool operators, and
remain active in managing the Sponsor until he is no longer a
managing member of the Sponsor or the Sponsor dissolves. In
addition, the Sponsor expects that operating the Teucrium Funds
will generally constitute the principal and full-time business
activity of its principals, officers and employees. Notwithstanding
these obligations and expectations, the Sponsor’s principals
may be directors, officers or employees of other entities, and may
manage assets of other entities, including the other Teucrium
Funds, through the Sponsor or otherwise. In particular, the
principals could have a conflict between their responsibilities to
the Fund on the one hand and to other Teucrium Funds or other
entities on the other. It is not possible to quantify the
proportion of their time that the Sponsor’s personnel will
devote to the Fund and its management.
The sixth
paragraph of the section of the prospectus entitled
“Over-the-Counter Derivatives” is hereby deleted and
replaced with the following:
The creditworthiness of each
potential counterparty will be assessed by the Sponsor. The Sponsor
assesses or reviews, as appropriate, the creditworthiness of each
potential or existing counterparty to an
“over-the-counter” contract pursuant to guidelines
approved by the Sponsor. The creditworthiness of existing
counterparties will be reviewed periodically by the Sponsor. There
is no guarantee that the Sponsor’s creditworthiness analysis
will be successful and that counterparties selected for Fund
transactions will not default on their contractual
obligations.
In the address
listed in the section of the prospectus entitled
“Incorporation by Reference of Certain Information” the
reference to Barbara Riker is hereby deleted and replaced
with:
Corey Mullen-Rusin