RE:RE:What value were your GSTM shares put in at?You know, I think I'll take the advice of the esteemed tax lawyers at Thorsteinssons LLP on my Canadian tax treatment. (Information circular starting at page 39)
"The aggregate cost (and ACB) to a Resident Holder of New Tudor Shares acquired on a Share Exchange will be equal to the amount, if any, by which the Resident Holder's ACB of its Old Tudor Shares immediately before the Share Exchange exceeds the aggregate fair market value, at the time of the Share Exchange, of the Goldstorm Shares acquired by such Resident Holder on the Share Exchange. The aggregate cost (and ACB) to a Resident Holder of Goldstorm Shares acquired on a Share Exchange will be equal to the aggregate fair market value, at the time of the Share Exchange, of the Goldstorm Shares acquired by such Resident Holder on the Share Exchange.”
So essentially the aggregate ACB of New Tudor plus Goldstorm at the date of exchange will be exactly equal to the ACB of Old Tudor to the holder - allocated with the FMV at the date of exchange to Goldstorm being its ACB, and the original ACB of the Old Tudor minus that Goldstorm ACB amount will be the new ACB of the New Tudor shares.
I don't know what the deemed FMV of the Goldstorm shares on the date of exchange was, but the company will know. Get your own tax and legal advice, but I think the suggestion the ACB of either new share is zero is dead wrong. My reading at least. Read the circular!
cg