RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:TFSA contributionsSkier59:
That is why it is a good idea to hold some shares in the TFSA as well. How many depends on your level of optimism.
If you think that, in 5 years’ time we will finally be breaking a dollar – because the whole cancer thing didn’t work -- but we have a moderate income from laser therapy – then you would need 70,000 shares. If the scenario is a little more optimistic – all countries will be run by climate alarmists and socialized medicine has become the world standard – meaning that limited cancer therapy is provided at low cost to party members – and the price of the stock is at $5 – you would need only 14,000.
If you have no way of raising cash in the TFSA, you will simply have to sell the warrants into the market. There will be no capital gains tax (hopefully). If the price of the stock is around $5 – the warrants should be at $4.65 and net $930,000. You will be miserable and distraught – but somewhat consoled by the fact that you will still be able to buy 186,000 shares.
If the stock is selling at $1 – you will net $130,000 (200,000 x .65) and only be able buy 130,000.