developbc wrote:
Sorry guys, the formatting in previous post was bit messy
Knowing full well this board now infested with soft bashers/manipulators I thought I would type out something quick to get ahead of the false narrative fake news spin on the reported stock option exercised and portion sold as filed with SEDI
Some people make a big deal of insider selling...I'm just reporting something I typed out before when PYR insider their in house lawyer sold at $1.79 to help cover cost of exercising options only a few months ago know the huge upside that awaits and we all know how well PYR has done.
For some who might not understand tax law in Canada:
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.
In this example:
The optics seem to appear that in this case, Patrick sale of 682,000 is NOT all net to him as he needs to pay taxes and then in turn help to cover the cost of the optioned 700,000 shares AND the taxes payable.
700,000 shares exercised Aug 19 w last day rule Aug 18,2020 deemed taxable benefit $378,000 @previous day mkt close $.54 less Cost base $49k 700,000 shares @7 cent strike price $329,000 1/2 Capital Gain Exception $164,500 taxable ~approx $83k taxes payble plus $49k acquisition costs roughly equals the $132k cash required to cover tax and option exercise costs.
Hence the sale 682,000 within few days of the 700,000 exercising of options to help cover the expenses.
There all kinds of reasons that insiders sell - health, emergency, financial, home purchase etc...but lets remember Patrick and others still owns millions of shares.
HPQ is on its way to something unimaginable greatness!!!!
"TIP OF THE ICEBERG" - PYROGENESIS CEO