Alaris Royalty Corp ALARF

Today's news...

[Rakaposhi]

Does this not mean our distributions will become taxable and will no longer be considered eligible?

Corporate Reorganization

Alaris would also like to announce that it is pursuing a corporate reorganization to convert (the "Conversion") from a corporation to a publicly-traded income trust (the "Trust") and has engaged legal and tax advisors to assist in structuring the Conversion. The Conversion is the foundation of a plan to enhance securityholder value and for continued prudent growth and will help simplify the Corporation's existing cross-border investment structure. Cash flow generated by the business of Alaris will be distributed to Alaris securityholders (as the holders of the units of the Trust) in accordance with a trust distribution policy which is expected to result in after tax cash distribution amounts that are similar to the amounts distributed to common shareholders under the current dividend policy of the Corporation.

[CanSiamCyp]

Rakaposhi: It is complicated for sure, but impossible to tell at this point what the impact will be! The major difference is that Corporations pay eligible dividends whereas Income Trusts "flow through" their income/revenue stream to the unitholders with the same characterization as they receive the income. Income Trusts (like REITs, for example) can also flow through Capital Gains and

[Rakaposhi]

Thanks CanSiamCyp, I hold a number of .UN stocks that are (or were) flow throughs of eligibles only. IPL.UN comes to mind. However, it seems AD is banking on the fact it's small retail holders are keeping AD in tax deferred accounts. For those who don't hold it tax deferred or in a corp, the changes are unlikely to be neutral. Even more so that with a change to a unit trust structure, a