RE:RE:RE:Collapse for 3 days -Dividends can only be paid out of Earnings & Profits, a very specific term by IRS definition. SVBL has no positive E & P, ergo, the Arras shares will be considered a return of principle to the extent of your basis and anything beyond your basis would be cap gains.
Example: your SVBL basis is 60 cents a share. Arras is valued at 25 cents on the day the shares appear in your brokerage account. Your basis for Arras is 25 cents a share and your basis in your SVBL shares drops to 35 cents.
What everyone needs to pay attention to is the combined basis of your Arras shares and your SVBL shares should be at least as much as what your SVBL shares were prior to receipt of the Arras shares.
If you are a Canuck, different tax rules may apply to you since SVBL is a U. S. Corporation. I am speaking only for domestic investors subject to filing an annual 1040 form.