Quipt Home Medical Corp T.QIPT

Alternate Symbol(s): QIPT

Healthcare

Quipt Home Medical Corp. is a home medical equipment provider. The Company specializes in improving the home management of chronic illness through the application of telehealth systems and automated distribution. It provides in-home monitoring and disease management services, including end-to-end respiratory solutions for patients in the United States. It offers nebulizers, oxygen concentrators, continuous positive airway pressure (CPAP) and Bilevel Positive Airway Pressure (BiPAP) units; traditional and non-traditional medical respiratory equipment and services, and non-invasive ventilation equipment, supplies, and services. The Company's product offerings include the management of several chronic disease states focusing on patients with heart or pulmonary disease, sleep disorders, reduced mobility, and other chronic health conditions. Its products and services consist of sleep apnea and pap treatment, home ventilation, daily and ambulatory aides, and respiratory equipment rental.

TSX:QIPT - Post by User

Quipt Home Medical Corp

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Comment by miningfundion Dec 21, 2017 4:06pm

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Post# 27209348

RE:RE:Tax accounting

The 5 day VWAP after the close is probably the best bet since that is the basis for the exercise pricing of the New PHM and VMD options and warrants.

lscfa wrote: Usually the fmv's for new phm and VMD are calculated as the averages of their respective trading prices for a specified no. of days after the spin-out (eg. 10 trading days). Of course, this is irrelevant if you hold PHM in your RSP......

miningfundi wrote: Management expects the fair market value (fmv) of the distributed VMD shares at the time of the exchange will be less than the paid up capital of the old PHM shares, so the VMD shares will not be a dividend.

The CRA ruling confirmed that section 86 will apply to the share exchange i.e. old PHM shareholders can elect a tax free share exchange.

The adjusted cost base (acb) of the New PHM shares will be the acb of the old PHM shares less the fmv of the distributed VMD at the time of the exchange. The acb of the VMD shares will be the fmv of the VMD shares at the time of the exchange.

Not sure who determines the fmv of the VMD shares at the time of the exchange?