Alaris Equity Partners Income 5 50 convertible unsecured subordinated Debentures T.AD.DB

Update re FMV/ACB for AD.UN

[CanSiamCyp]

Hi all!

I promised to share anything that I discovered re the initial unit price (= FMV = ACB) for AD.UN.

As previously stated, BMO IL inserted $12.34 for this value. I requested a clarification on the source of that number, and today was informed that BMO IL derived this value from the 04 Sept market open price for AD.UN.

Since another blogger reported receiving an email from Alaris IR citing $12.19 as the correct FMV to use, I also sent an email to Alaris IR last week. Apart from an auto reply stating that the dude would be out of office until yesterday, I have heard nothing back from Alaris (sweet investor relations!!!!).

Since BMO IL will issue a T5008 next tax reporting cycle based on their $12.34 value, I will stick with this. Forcing them to revise will be too much of a hassle, and I don't want any queries from the lovely folks at CRA if I chose to use a different value from BMO.

Since Alaris has stated that there will likely be a Return of Capital portion in the distribution, we can expect the ACB to decline at the conclusion of each tax year in the future.

Cheers to all!

[Local4Proper]

I heard back from IR, they said 12.34 is being used by some investors. 12.27 is also a popular number being used. When exactly would you received this T5008 form? IR said that you can used whatever number you can defend when filing your taxes. I would assume this would mean whatever you decide your AD units were changed for, the new ACB for AD.UN would be the same number. And if you have a tax

[CanSiamCyp]

You are correct L4P! In my case, BMO used the $12.34 value as the ACB for AD.UN. The same aggregate value (# of AD shares exchanged @ $12.34 each) represents the "liquidation" value of the AD shares. This number will be shown on the T5008 form issued by BMO next tax reporting cycle (so the form will be issued in March 2021) showing, in my case, a capital loss for the liquidation. Hope