Aquarius Surgical Technologies Inc. — Capital/Financing Update 2021

Jul 19, 2021

July 19, 2021

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EQUITY LINKED SECURITY | RBC GLOBAL INVESTMENT SOLUTIONS

RBC LiONS™ Canadian Banks Accelerator Securities, Series 38, F-Class Non-Principal Protected Security

7 year term

395% of the appreciation of a notional portfolio of the common shares of six Canadian chartered banks

KEY TERMS

7 year term	7 year term	395%of the appreciation of a notional portfolio of the common shares of six Canadian chartered banks	395%of the appreciation of a notional portfolio of the common shares of six Canadian chartered banks	395%of the appreciation of a notional portfolio of the common shares of six Canadian chartered banks	395%of the appreciation of a notional portfolio of the common shares of six Canadian chartered banks	395%of the appreciation of a notional portfolio of the common shares of six Canadian chartered banks
www.rbcnotes.com Subscriptions Close on or about August 6, 2021 FUNDSERV RBC4138 This summary is qualified in its entirety by a pricing supplement (the “Pricing Supplement”), the base shelf prospectus dated February 27, 2020, the program prospectus supplement dated February 27, 2020 and the product prospectus supplement dated February 27, 2020, in respect of equity, unit and debt linked securities.		KEY TERMS Issuer: Royal Bank of Canada Issuer Credit Ratings: Moody’s: Aa2; S&P: AA-; DBRS: AA Currency: CAD Minimum Investment: 50 Debt Securities or $5,000 Term: Approximately 7 years Principal at Risk: The Debt Securities are not principal protected Underlying Securities: Return linked to the price performance (excluding any dividends and other distributions) of a notional portfolio of the common shares of the six Canadian chartered banks listed below, equally weighted. The Debt Securities do not represent an interest in the Underlying Securities, and holders will have no right or entitlement to the Underlying Securities, including, without limitation, redemption rights (if any), voting rights or rights to receive dividends and other distributions paid on any of such Underlying Securities (the annual dividend yield on the Portfolio as of June 30, 2021 was 3.68%, representing an aggregate dividend yield of approximately 28.79% compounded annually over the seven-year term, on the assumption that the dividend yield remains constant). Company Name Symbol Company Name Symbol Royal Bank of Canada RY The Toronto-Dominion Bank TD Bank of Montreal BMO National Bank of Canada NA The Bank of Nova Scotia BNS Canadian Imperial Bank of Commerce CM Issue Date: August 13, 2021 Initial Portfolio Value: The “Initial Portfolio Value” is the Portfolio Value on August 9, 2021. Final Portfolio Value: The “Final Portfolio Value” is the Portfolio Value on August 9, 2028. Maturity Date: August 14, 2028
	www.rbcnotes.com Subscriptions Close on or about August 6, 2021 FUNDSERV RBC4138 This summary is qualified in its entirety by a pricing supplement (the “Pricing Supplement”), the base shelf prospectus dated February 27, 2020, the program prospectus supplement dated February 27, 2020 and the product prospectus supplement dated February 27, 2020, in respect of equity, unit and debt linked securities.		Issuer: Royal Bank of Canada
			Issuer Credit Ratings: Moody’s: Aa2; S&P: AA-; DBRS: AA
			Currency: CAD
			Minimum Investment: 50 Debt Securities or $5,000
			Term: Approximately 7 years
			Principal at Risk: The Debt Securities are not principal protected
			Underlying Securities: Return linked to the price performance (excluding any dividends and other distributions) of a notional portfolio of the common shares of the six Canadian chartered banks listed below, equally weighted. The Debt Securities do not represent an interest in the Underlying Securities, and holders will have no right or entitlement to the Underlying Securities, including, without limitation, redemption rights (if any), voting rights or rights to receive dividends and other distributions paid on any of such Underlying Securities (the annual dividend yield on the Portfolio as of June 30, 2021 was 3.68%, representing an aggregate dividend yield of approximately 28.79% compounded annually over the seven-year term, on the assumption that the dividend yield remains constant).
						Symbol TD NA CM
			Company Name	Symbol	Company Name	Symbol
			Royal Bank of Canada	RY	The Toronto-Dominion Bank	TD
			Bank of Montreal	BMO	National Bank of Canada	NA
			The Bank of Nova Scotia	BNS	Canadian Imperial Bank of Commerce	CM
			Issue Date: August 13, 2021
			Initial Portfolio Value: The “Initial Portfolio Value” is the Portfolio Value on August 9, 2021.
			Final Portfolio Value: The “Final Portfolio Value” is the Portfolio Value on August 9, 2028.
			Maturity Date: August 14, 2028

A final base shelf prospectus containing important information relating to the securities described in this document has been filed with the securities regulatory authorities in each of the provinces and territories of Canada. A copy of the final base shelf prospectus, any amendment to the final base shelf prospectus and any applicable shelf prospectus supplement that has been filed, is required to be delivered with this document. This document does not provide full disclosure of all material facts relating to the securities offered. Investors should read the final base shelf prospectus, any amendment and any applicable shelf prospectus supplement for disclosure of those facts, especially risk factors relating to the securities offered, before making an investment decision.

KEY TERMS CONTINUED

Portfolio Value:	The “Portfolio Value” for the Portfolio on any Exchange Day is calculated by: (a) multiplying (i) the official
	closing price of each Underlying Security, as announced by the TSX, on such Exchange Days by (ii) the
	corresponding Number of Underlying Securities for such Underlying Security; and (b) aggregating the resulting
	products.
Number of Underlying Securities:	The “Number of Underlying Securities” for each Underlying Security is calculated by: (i) multiplying the Portfolio Weight for such Underlying Security by the aggregate Principal Amount of Debt Securities issued
	under this offering; and (ii) dividing the resulting product by the official closing price of such Underlying
	Security, as announced by the TSX on the Initial Valuation Date.
Payment at Maturity:	Payment at maturity will be based on the price performance (or “Percentage Change”) of the Portfolio measured from the Initial Portfolio Value to the Final Portfolio Value and, in the case of a positive Percentage Change
	only, multiplied by a Participation Rate of 395.00%. The amount payable (the “Redemption Amount”) on each
	$100 Principal Amount per Debt Security at maturity will be determined as follows:
	If the Percentage Change ispositive, then the Redemption Amount will be:
	 $100 + ($100 × Percentage Change × Participation Rate)
	If the Percentage Change iszero or negative, then the Redemption Amount will be reduced by the amount of
	any decline and the Redemption Amount will be:
	 $100 + ($100 × Percentage Change)
	All dollar amounts will be rounded to the nearest whole cent. The minimum payment at maturity is $1.00 per
	Debt Security.
Percentage Change:	The “Percentage Change” is the amount, expressed as a percentage rounded to two decimal places, equal to:
	(Final Portfolio Value-Initial Portfolio Value)
	Initial Portfolio Value
Participation Rate:	395.00% applied only if the Percentage Change is positive.
Secondary Market:	Fundserv – RBC4138

Hypothetical Calculation of the Initial Portfolio Value:

It is assumed that the aggregate Principal Amount of Debt Securities issued under the offering is $15,000,000 and the (hypothetical) closing prices of the Underlying Securities comprising the Portfolio on the Initial Valuation Date are as illustrated in the table below:

			Underlying Security	Portfolio	Number of Underlying
Company Name	Symbol	Closing Price ($)
			Value in Portfolio ($)	Weight	Securities
Royal Bank of Canada	RY	125.59	2,500,000.00	16.667%	19,906.04347
Bank of Montreal	BMO	127.06	2,500,000.00	16.667%	19,675.74374
The Toronto-Dominion Bank	TD	86.87	2,500,000.00	16.667%	28,778.63474
The Bank of Nova Scotia	BNS	80.62	2,500,000.00	16.667%	31,009.67502
National Bank of Canada	NA	92.77	2,500,000.00	16.667%	26,948.36693
Canadian Imperial Bank of Commerce	CM	141.11	2,500,000.00	16.667%	17,716.67493

Based on those assumptions, the Initial Portfolio Value would be the sum of the Underlying Security values, which is $15,000,000.

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Hypothetical Calculation of the Final Portfolio Value:

For illustration purposes, it is assumed that no Extraordinary Event has occurred and that the (hypothetical) closing prices of the Underlying Securities comprising the Portfolio on the Final Valuation Date are as illustrated in the table below. Certain dollar values for the purposes of the table below have been rounded to two decimal places.

			Number of Underlying	Underlying Security Value in
Company Name	Symbol	Closing Price ($)
			Securities	Portfolio ($)
Royal Bank of Canada	RY	153.85	19,906.04347	3,062,544.79
Bank of Montreal	BMO	155.65	19,675.74374	3,062,529.51
The Toronto-Dominion Bank	TD	106.42	28,778.63474	3,062,622.31
The Bank of Nova Scotia	BNS	98.76	31,009.67502	3,062,515.50
National Bank of Canada	NA	113.64	26,948.36693	3,062,412.42
Canadian Imperial Bank of Commerce	CM	172.86	17,716.67493	3,062,504.43

Based on those assumptions, the Final Portfolio Value would be the sum of the Underlying Security values, which is $18,375,128.96 (note that this is the sum of the values from the “Underlying Security Value in Portfolio ($)” column).

Sample Calculations of Redemption Amount

The examples set out below are included for illustration purposes only. The Portfolio Values used to illustrate the calculation of the Redemption Amount are not estimates or forecasts of the Initial Portfolio Value and Final Portfolio Value on which the calculation of the Percentage Change, and in turn the Redemption Amount, will depend. All examples assume that a holder of the Debt Securities has purchased Debt Securities with an aggregate principal amount of $100 and that no Extraordinary Event has occurred. All dollar amounts in the examples below are rounded to the nearest whole cent.

Example #1 — Calculation of the Redemption Amount where the Percentage Change is negative.

Assuming that the Initial Portfolio Value is $15,000,000.00 and the Final Portfolio Value is $9,799,559.76, the Redemption Amount on each $100 Principal Amount per Debt Security would be calculated as follows:

Initial Portfolio Value = $15,000,000.00 Final Portfolio Value = $9,799,559.76

Percentage Change = ($9,799,559.76 - $15,000,000.00) / $15,000,000.00 = -0.34670 or -34.67%

Since the Percentage Change is negative, the Redemption Amount is calculated as follows:

Redemption Amount = $100 + ($100 × -34.67%) = $65.33

In this example, the Redemption Amount results in a loss on the Principal Amount equivalent to an annually compounded loss rate of 5.90%.

Example #2 — Calculation of the Redemption Amount where the Percentage Change is positive.

Assuming that the Initial Portfolio Value is $15,000,000.00 and the Final Portfolio Value is $18,375,128.96, the Redemption Amount on each $100 Principal Amount per Debt Security would be calculated as follows:

Initial Portfolio Value = $15,000,000.00 Final Portfolio Value = $18,375,128.96

Percentage Change = ($18,375,128.96 - $15,000,000.00) / $15,000,000.00 = 0.2250 or 22.50%

Since the Percentage Change is positive, the Redemption Amount is calculated as follows:

Redemption Amount = $100 + ($100 × 395% × 22.50%) = $188.88

In this example, the Redemption Amount provides a return on the Principal Amount equivalent to an annually compounded rate of return of 9.51%.

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GRAPHICAL DESCRIPTION OF THE REDEMPTION AMOUNT

The graph set out below is included for illustration purposes only. The values of the Portfolio used to illustrate the calculation of the Redemption Amount are not estimates or forecasts of the Initial Portfolio Value and Final Portfolio Value on which the calculation of the Percentage Change, and in turn the Redemption Amount, will depend. This graph shows a limited range of hypothetical returns on the Portfolio and is intended to be representative of that range only. Returns on the Portfolio not shown on the graph are still possible to achieve and the corresponding returns on the Debt Securities should be calculated using the formulas set out in the Pricing Supplement. This graph demonstrates what the return on the Debt Securities will be for a specific price performance of the Portfolio. There can be no assurance that any specific return will be achieved. All examples assume that a holder of the Debt Securities has purchased Debt Securities with an aggregate Principal Amount of $100 and that no Extraordinary Event has occurred. The minimum Redemption Amount is $1.00 per Debt Security.

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Graphical example of the payment at maturity of the
RBC LiONS [TM] Canadian Banks Accelerator Securities, Series 38, F-Class
 Payment at maturity  Percentage Change in Underlying Securities
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The initial estimated value of the Debt Securities as of July 14, 2021 was $98.66 per Debt Security, which is less than the price to the public and is not an indication of the actual profit to the Bank or its affiliates. The actual value of the Debt Securities at any time will reflect many factors, cannot be predicted with accuracy, and may be less than this amount. The initial estimated value of the Debt Securities is an estimate only and is based on the value of the Bank’s obligation to make the payments on the Debt Securities. We describe our determination of the initial estimated value in more detail in the Pricing Supplement.

All capitalized terms unless otherwise defined have the meaning ascribed to them in the Pricing Supplement.

Clients should evaluate the financial, market, legal, regulatory, credit, tax and accounting risks and consequences of the proposal before entering into any transaction, or purchasing any instrument. Clients should evaluate such risks and consequences independently of Royal Bank of Canada and the Dealers, RBC Dominion Securities Inc. and Laurentian Bank Securities Inc., respectively.

The Debt Securities will not constitute deposits insured under the Canada Deposit Insurance Corporation Act .

The Debt Securities are not fixed income securities and are not designed to be alternatives to fixed income or money market instruments. The Debt Securities are structured products that possess downside risk.

An investment in the Debt Securities involves risks. An investment in the Debt Securities is not the same as a direct investment in the securities that comprise the Portfolio and investors have no rights with respect to the securities in the Portfolio. The Debt Securities are considered to be “specified derivatives” under applicable Canadian securities laws. If you purchase Debt Securities, you will be exposed to fluctuations in interest rates and changes in the Portfolio Value, among other factors. Price changes may be volatile and an investment in the Debt Securities may be considered to be speculative. Since the Debt Securities are not principal protected and the Principal Amount will be at risk, you could lose substantially all of your investment.

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® Registered trademark of Royal Bank of Canada

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