BioExx Specialty Proteins Ltd BIXZF

RE:accounting question

[buckrod]

"The ITA (5) (a) (i) requires that, in order for the previous non capital losses to be deductible subsequent to a change in control, the acquired business must be carried on with a reasonable expectation of profit. In the absence of an expectation of profit these losses would no longer be deductible and would become worthless. Therefore, purchasing a business only for the use of its existing tax losses would not be allowed, as it would be argued that no reasonable expectation of profit could be expected. (and even if this argument were not successful, the GAAR would come into play).    

So make of this what you will but Bioexx as a business will not be carried on with a reasonable expectation of profit by the aquirer. The building land etc is all sold and dispersed of as a business to make proteins. So I feel the carry over tax loss would be worthless to any aquirer. The best that could be hoped for is that they sell the patents and IP for lets say 10 million if they are lucky, and if no more burn through this 2-3 cents a share could be dispersed to common shareholders. But I doubt that. Chris S is the only one with large money in his pocket from this mess and doesn't care at all about the common shareholder. The debenture holders will get their money back, Chris s et all, and that will likely be all after IP sale.