RE:RE:RE:60 minutes - wind farmsWillsridge wrote: That's a fictious price per share and doesn't reflect any real price. Some of mine show 9.18 and others show 5 cents.
No. It's not a ficticious price. Yes, TD screwed up the calculation to get to the $9.185 'cost per share' as it seems they treated the September 21st transaction as a share exchange based on the approximate $2.50 market value of SALT on that day. So, they basically took your SALT share holdings times .2711 to get the total TPR shares you are eligible for but then assumed you were giving up the SALT shares. They did not treat it as a dividend-in-kind.
The other thing is not to confuse price with cost. If you look at the Plan of Arrangement document it stated that special warrants were issued at 2 cents and 5 cents up to the date of the Arrangeement. Those would have represented the fair value of TPR at that time. The valuation for the spin-out would have been done at that time as well. So, it would make sense that it is somewhere in between 2 cents and 5 cents for the value of the dividend-in-kund and likely closer to the 5 cents as that likely represented the last transaction that represented the fair value of TPR at that time. Remember, any shareholder wants this calculation to be as low as possible as it represents the value of the dividend-in-kind that will be taxable outside of reigistered accounts and will represent the cost base (ACB) of the shares when sold. This way, if one is lucky enough to have any appreciation and ultimate sale the gains will be taxable capital gains (50% inclusion rate).
When this ultimately opens and trades at is anybody's guess. In August the hype was high and it could have traded at, say 50 cents to $1. However, the shine has come off of the TPR assets for now as was evidenced by the drop in SALT even before the record date. Let's hope TPR rises quickly after it is approved for trading. Or better still, let's hope TPR sells before then :).