Ventura Cannabis and Wellness Corp CVHIF

RE:RE:RE:RE:RE:RE:Buyers of CVHIF shares

[davgro]

dileas48s wrote:

It's kind of a burn that you get VIBE shares and warrants who's value is way below initial investment cost for CXV/BLVD/VCAN but capital gains will hit for selling with an SP above $1.06 (for the shares anyway).

The whole transaction was a slap in the face to VCAN shareholders especially if you held VCAN shares in unregistered accounts.  Management in all its wisdom decided to do this transaction as a distribution to shareholders instead of a merger or takeover.  As such:

* you will pay tax on the stock dividend (i.e. total value of VIBE shares you receive)
* in addition, you will pay a capital gain on the sale of your VIBE shares if you sell above the ACB set by the stock dividend
* you can only crystalize your capital loss if you sell or gift your CVHIF shares which you can then use to offset capital gains earned elsewhere

If you held VCAN shares in your TFSA:

* you probably took a major loss in your investment and can't reclaim that contribution room in your TFSA related to the loss incurred.