Canada's 2024 Federal Budget increases capital gains taxThe proposed capital gains tax change to 67.5% from 50%, if adopted, would come into effect on June 25, 2024.
Consequently, any Canadian company looking to be acquired would want to have the acquisition announcement to happen before that date.
As I pointed out, should an acquisition announcement be made before June 25, 2024, the current 50% capital gains tax would be grandfathered-in ... even though the closure date could be sometime after the June 25, 2024.
Otherwise, ONCY and the company's Canadian shareholders will become subject to a 67.5% capital gains tax on the acquisition of ONCY thereafter.
If ONCY's management is prudent then an all cash acquisition of ONCY is what is necesssary, and would happen before June 25, 2024.
If they aren't, then everyone stands to loose a significant portion of their capital gains through the increase in the inclusion of the capital gains tax announced by the Canadian Federal Government, earlier this week.