Form FWP BANK OF MONTREAL /CAN/ Filed by: BANK OF MONTREAL /CAN/
Filed Pursuant to Rule 433
Registration Statement No. 333-285508
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Bank of Montreal
Market Linked Securities |
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Market Linked Securities—Auto-Callable with Fixed Coupon and Geared Buffered Downside Principal at Risk Securities Linked to the Class A Common Stock of DraftKings Inc. due May 22, 2028 Term Sheet to Preliminary Pricing Supplement dated May 14, 2026 |
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Summary of Terms |
Hypothetical Payout Profile (maturity payment amount)*** |
| Issuer: | Bank of Montreal |
| Market Measure: | The Class A common stock of DraftKings Inc. (the “Underlier”) |
| Pricing Date*: | May 19, 2026 |
| Issue Date*: | May 22, 2026 |
| Face Amount and Original Offering Price: |
$1,000 per security |
| Coupon Payments: | On each coupon payment date, you will receive a fixed coupon payment at a per annum rate equal to the coupon rate. Each “coupon payment,” will be calculated per security as follows: ($1,000 × coupon rate)/12 |
| Coupon Payment Dates*: | Monthly, on the 22nd day of each month, commencing June 2026 and ending at maturity or earlier automatic call |
| Coupon Rate: | At least 13.00% per annum, to be determined on the pricing date |
| Automatic Call: | If the closing value of the Underlier on any call date is greater than or equal to the starting value, the securities will be automatically called, and on the related call settlement date, you will be entitled to receive a cash payment per security in U.S. dollars equal to the face amount plus a final coupon payment |
| Call Dates*: | Monthly, on the third scheduled business day prior to each coupon payment date scheduled to occur from November 2026 to April 2028 |
| Call Settlement Date: | Three business days after the applicable call date |
| Final Calculation Day*: | May 17, 2028 |
| Maturity Payment Amount (per security): |
If the securities are not automatically called prior to the stated maturity date: · if the ending value is greater than or equal to the threshold value, a cash payment in U.S. dollars equal to $1,000; or · if the ending value is less than the threshold value, a number of shares of the Underlier equal to the share delivery amount |
| Stated Maturity Date*: | May 22, 2028 |
| Share Delivery Amount: | A number of shares of the Underlier equal to the product of (i) the face amount divided by the threshold value and (ii) the adjustment factor, rounded to five decimal places. The adjustment factor is initially set equal to 1.0 on the pricing date, subject to adjustment for certain corporate events relating to the Underlier. We will pay cash in lieu of delivering any fractional shares of the Underlier in an amount equal to that fraction multiplied by the ending value |
| Starting Value: | The closing value of the Underlier on the pricing date |
| Ending Value: | The closing value of the Underlier on the final calculation day |
| Threshold Value: | 70% of the starting value |
| Calculation Agent: | BMO Capital Markets Corp., an affiliate of the issuer |
| Denominations: | $1,000 and any integral multiple of $1,000 |
| Agent Discount**: | Up to 2.325% for Wells Fargo Securities, LLC (“WFS”). Of that agent discount, Wells Fargo Advisors (“WFA”), may receive a selling concession of up to 1.75% and a distribution expense fee of up to 0.075% |
| CUSIP: | 06370EGE2 |
| Material Tax Consequences: |
See the preliminary pricing supplement |
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*subject to change ** In addition, selected dealers may receive a fee of up to 0.20% for marketing and other services. | |
*** If the ending value is less than the threshold value, you will receive on the stated maturity date per security a number of shares of the Underlier equal to the share delivery amount. Fractional shares will be paid in cash. For purposes of the above profile, the value of the shares received is calculated based on the ending value. The actual value of any shares received on the stated maturity date will depend on the closing value of the Underlier on the stated maturity date rather than the ending value and may be less than the amounts shown.
If the securities are not automatically called prior to stated maturity and the ending value is less than the threshold value, you will receive a number of shares of the Underlier at maturity that is expected to be worth less than the face amount of the securities and may be worthless. The actual value of the shares you receive at maturity will depend on the closing value of the Underlier on the stated maturity date, which may be lower than its value on the final calculation day.
Any return on the securities will be limited to the sum of the coupon payments. You will not participate in any appreciation of the Underlier, but you will have downside exposure to the Underlier if the ending value is less than the threshold value.
On the date of the accompanying preliminary pricing supplement, the estimated initial value of the securities is $968.10 per security. The estimated initial value of the securities at pricing may differ from this value but will not be less than $920.00 per security. However, as discussed in more detail in the accompanying preliminary pricing supplement, the actual value of the securities at any time will reflect many factors and cannot be predicted with accuracy. See “Estimated Value of the Securities” in the accompanying preliminary pricing supplement.
Preliminary Pricing Supplement:
https://www.sec.gov/Archives/edgar/data/927971/000121465926006193/z513260424b2.htm
The securities have complex features and investing in the securities involves risks not associated with an investment in conventional debt securities. See “Selected Risk Considerations” in this term sheet and the accompanying preliminary pricing supplement and “Risk Factors” in the accompanying product supplement.
This introductory term sheet does not provide all of the information that an investor should consider prior to making an investment decision.
Investors should carefully review the accompanying preliminary pricing supplement, product supplement, prospectus supplement and prospectus before making a decision to invest in the securities.
NOT A BANK DEPOSIT AND NOT INSURED OR GUARANTEED BY THE FDIC OR ANY OTHER GOVERNMENTAL AGENCY
Selected Risk Considerations
The risks set forth below are discussed in detail in the “Selected Risk Considerations” section in the accompanying preliminary pricing supplement and the “Risk Factors” section in the accompanying product supplement. Please review those risk disclosures carefully.
Risks Relating To The Securities Generally
| · | If The Securities Are Not Automatically Called Prior To Stated Maturity, You May Lose Some Or All Of The Face Amount Of Your Securities At Stated Maturity. |
| · | You Will Be Exposed To The Decline In The Underlier If The Ending Value Is Less Than The Threshold Value, But You Will Not Participate In Any Positive Performance Of The Underlier. |
| · | Higher Coupon Rates Are Associated With Greater Risk. |
| · | You Will Be Subject To Reinvestment Risk. |
| · | The Securities Are Subject To Credit Risk. |
| · | The U.S. Federal Income Tax Consequences Of An Investment In The Securities Are Unclear. |
| · | The Stated Maturity Date May Be Postponed If The Final Calculation Day Is Postponed. |
Risks Relating To The Estimated Value Of The Securities And Any Secondary Market
| · | The Estimated Value Of The Securities On The Pricing Date, Based On Our Proprietary Pricing Models, Will Be Less Than The Original Offering Price. |
| · | The Terms Of The Securities Are Not Determined By Reference To The Credit Spreads For Our Conventional Fixed-Rate Debt. |
| · | The Estimated Value Of The Securities Is Not An Indication Of The Price, If Any, At Which WFS Or Any Other Person May Be Willing To Buy The Securities From You In The Secondary Market. |
| · | The Value Of The Securities Prior To Stated Maturity Will Be Affected By Numerous Factors, Some Of Which Are Related In Complex Ways. |
| · | The Securities Will Not Be Listed On Any Securities Exchange And We Do Not Expect A Trading Market For The Securities To Develop. |
Risks Relating To The Underlier
| · | The Maturity Payment Amount And Whether The Securities Are Automatically Called Will Depend Upon The Performance Of The Underlier And Therefore The Securities Are Subject To The Following Risks, Each As Discussed In More Detail In The Accompanying Product Supplement. |
| o | Investing In The Securities Is Not The Same As Investing In The Underlier. |
| o | Historical Values Of The Underlier Should Not Be Taken As An Indication Of The Future Performance Of The Underlier During The Term Of The Securities. |
| o | The Securities May Become Linked To The Common Stock Of A Company Other Than The Original Underlying Stock Issuer. |
| o | We Cannot Control Actions By The Underlying Stock Issuer. |
| o | We And Our Affiliates Have No Affiliation With The Underlying Stock Issuer And Have Not Independently Verified Its Public Disclosure Of Information. |
| o | You Have Limited Anti-dilution Protection. |
| · | The Securities Will Be Subject To Single Stock Risk. |
Risks Relating To Conflicts Of Interest
| · | Our Economic Interests And Those Of Any Dealer Participating In The Offering Are Potentially Adverse To Your Interests. |
The Issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this document relates. Before you invest, you should read the prospectus in that registration statement and the other documents that the Issuer has filed with the SEC for more complete information about us and this offering. You may obtain these documents free of charge by visiting the SEC’s website at http://www.sec.gov. Alternatively, the Issuer will arrange to send to you the prospectus (as supplemented by the prospectus supplement) if you request it by calling the Issuer’s agent toll-free at 1-877-369-5412.
Wells Fargo Advisors is a trade name used by Wells Fargo Clearing Services, LLC and Wells Fargo Advisors Financial Network, LLC, members SIPC, separate registered broker-dealers and non-bank affiliates of Wells Fargo & Company.
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