Spartan Delta Corp T.SDE

Alternate Symbol(s): DALXF

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Spartan Delta Corp. is a Canada-based energy company. The Company is engaged in exploration, development and production of crude oil and natural gas properties in western Canada. The Company has a portfolio of production and development opportunities in the Deep Basin and the Duvernay. It is focused on the execution of the Company’s organic drilling program in the Deep Basin, delivering operational synergies. It is also focused on growing and developing its Duvernay asset.

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Spartan Delta Corp > Tax consequences of the deal

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Comment by black4444on Mar 28, 2023 3:46pm

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Post# 35365339

RE:RE:Tax consequences of the deal

"Pursuant to the distribution, the company will distribute $519.3-million in cash and $60.6-million in Logan shares and the transaction warrants as a return of capital to eligible Spartan shareholders.

The balance of the distribution will be distributed to eligible Spartan shareholders as a dividend"

Part of the distribution is a return of capital, the balance is eligible dividend. So my guess is the cash reduces the ACB of the RemainCo shares and the Logan shares/warrants will have an ACB of zero.

Happy to be corrected if somebody sees this differently.

This will be more fully addressed in the Info Circular to be issued.