RE:RE:RE:Method - Lets compare notes You should probably read the press release and the SEDAR filing with the indenture amendments again to understand what you own.
The accretion debentures are like a zero coupon bond in that they don't pay any cash interest. They compound based on the amount of remaining FIRE.DB owned. They don't trade though and will start getting paid back monthly in September 2023 at a rate of $500k/month.
puppymonkeybaby wrote: Sorry, so what does the units of this accretion represent?
The FIRE.DB debentrues are all that is left to purchase, correct? I thought I seen somewhere that new debentures would not be on any public market.
Method wrote: The cost basis that RBC has determined seem wrong so I would just ignore.
1. The restricted shares show zero value because it's a placeholder security set up by RBC and they haven't bothered to assign a price. But they will be freely traded common in 4 months
2. The common cost base appears to be the entire cost base of the debentures held before the corporate action.
3. The accretion debentures are non-negotiatible so irrelevant to decision making but that's the ~11% that compounds on top of the "remaining" FIRE.DB units you hold. It will keep building as long as you hold FIRE.DB and will start getting paid back in Sept 2023.
4. They are just using the market price to determine the ACB for the remaining debentures. Not sure how that will shake out at tax time.
puppymonkeybaby wrote:
I wish I could take a pic to show you. I dont know how.
Looks like my election went through and (I think) I have half my shares free trading. Too bad I didnt get these free trading shares friday. Looks like RBC's flaky platform got me again!
SInce you have RBC, you will probably see what I see on your holdings page.
From top to bottom:
1.) S08333 Comon shares, Rst 4 month hold - Shows $0 value.
2.) FIRE - Appears to be free trading shares. Shows -71% value w/ avg cost of 0.4936
3.) Supreme Accretion Debenture - Shows $0 value.
4.) FIRE.DB - Debentures with $0 gain/loss.
What does the number of accretion units represent under #3 and how do they differ from FIRE.DB units under #4?
Thanks