Pyrogenesis Canada Inc T.PYR

RE:RE:RE:PYR INSIDER SALE / OPTIONS CDN TAX LAWS *UPDATED

[developbc]

kingscorpion wrote:

BCONTVentures wrote: Excellent post developbc, thanks for doing this.  A very informative read.

I own shares in a number of companies and monitor insider transactions regularly.  Transactions like this, and similar transactions, I don't worry about and remember that stock options are just one form/part of executive compensation. 

Pierre has been with PyroGenesis since 1998 and has been instrumental in PyroGenesis' success.  (Just take a look at the number of patents that Pierre has invented/co-invented, over 40 so far).  A big thanks to Pierre for all of his hard work and dedication!

Exciting times!  TIP OF THE ICEBERG!!!

Long and Strong in PyroGenesis!

developbc wrote:

UPDATED as I was basing my previous post on SEDI Filing as per CEO.ca but it it might have errors which stated purchases but not on other filings site so I prefer to use this post for now. 

Another reason why facts need be reposted as this board infested with soft bashers/manipulators. So good to get ahead of the false narrative fake news spin on the reported stock option exercised and shares sold , as filed with SEDI. 

The 30,000 shares sold were to help cover the taxes and 30,000 share option cost
 

1.  CRA tax on stock options:

Under CRA rules when a stock option is exercised it triggers a taxable benefit which is equal to the difference between the exercise price and market value of the shares which is pegged as the previous last trading day closing price. You can NOT postpone the timing of tax payable.

After exercising(buying) the shares, one can either immediately sell the shares OR hold onto them but will still be subject to the triggered taxes payable.

2.  Sale of shares captial gain tax:

Some seem not understand or purposely try not to follow....so for clarity:
The options exercised are immediately triggering a tax payable AND the sale of the shares is also taxable under capital gain. 

In this example: 

• 30,000 shares sold @ $5.20/$5 ~avg sp $5.10 equals $153,000 sale proceeds. Assuming early day's sp equates to roughly $75k taxable gain thus roughly $37k tax payable on sale.
• 30,000 option shares exercised Aug 17,2020 w last day close rule Aug 14  deemed a taxable benefit of$162,600 @previous day mkt close $5.42
• Less cost base $15.6k 30,000 shares @52 cent strike price gives $147,000 taxable gain.
• With the 1/2 Capital Gain Exception $73,500 taxable ~approx $37k taxes payble plus $15.6k acquisition costs roughly equals the $89.1k cash required to cover tax and option exercise costs
• $89.1k plus $37k payable on sale = $126.1k cash required for tax and option costs

 

He roughly needed about $126.1k cash for both these transactions out of $153k sale proceeds. I see nothing wrong with that. ZERO concern!

Regardless, there all kinds of reasons that insiders sell - health, emergency, financial, home purchase etc. BUT in this case he just covered the taxes and exercise share costs!

Nonethless, PYR on its way to something unimaginable greatness!!!!

TIP OF THE ICEBERG! - PYROGENESIS CEO

 

 

1st find out what % of his total shares owned did Pierre sold If its under 10% don't worry if it is under 5% he's probably buying his son a Mercedes benz. If its over 10% then look at Pascalli Is he selling? If the answer is no then dont worry about it Sometimes they sell for personal use

Yes indeed but in this case zero issues as it was related to taxation :

He roughly needed about $126.1k cash for both these transactions out of $153k sale proceeds. I see nothing wrong with that. ZERO concern!

Regardless, there all kinds of reasons that insiders sell - health, emergency, financial, home purchase etc. BUT in this case he just covered the taxes and exercise share costs!

Nonethless, PYR on its way to something unimaginable greatness!!!!

TIP OF THE ICEBERG! - PYROGENESIS CEO