Aphria Inc. APHA

My Bank Broker just told me

[hevin]

that my aphria shares that converted to tilray is a taxable event. In other words, they converted at a profit, so I will have to pay tax on it next year. I don't believe this, as I was under the impression the merger would eliminate this as a taxable event...any opinions? 
btw, my tilray shares showing a loss....effed up.
The other weird thing is that by tilray shares are on the U.S. exchange. I thought we'd be on the TSX too?
apologies if this has been explained before!

[Oldweed]

The way I read the deal was TLRY would remain on Nasdaq and Canadian APHA shares would be converted to to US TLRY shares with a conversion rate of 0.8381, and some time after the merger TLRY would list on the TSX.  

[hevin]

thanks, but is the conversion a taxable event? I thought not, as otherwise they'd be taxing us twice..as an apha holder to tilray, then later as a tilray holder who's selling....confused.

[Oldweed]

I'm not sure how it could be? I thought the conversion rate of 0.8381 was to account for the higher US dollar so assuming the exchange rate remained the same so would the actuall share value. The Canadian dollar is curently stronger than it was at the time of the deal so there is possibly a small capital gain due to the merger but with the pressure on the shares your balance is likely less

[hevin]

yep we're on same page...suspect broker was wrong..will have to contact tilaphria..

[CommonCentsforDollars]

If you owned APHA on the TSX your shares will become TLRY TSX. If you owned APHA on the Nasdaq your shares become TLRY on Nasdaq. No tax's, no need to even discuss exchange rates.  eom momo

[hevin]

I concur! However, seems Scotiabank doesn't...they transferred my Apha TSX shares to Tilryay NASDQ shares, so I'm pissed off. There's also tax implications, even in a TFSA,  should Tilray begin paying divvy's which they have signalled prevously they'd like to. 

[CommonCentsforDollars]

No, there are NO tax implications. NONE. How could there be? Aphria bought Tilray. No tax implications, regardless of what type of account you hold this in. Again, NO TAX IMPLICATIONS. NONE.

[hevin]

I hate quoting the Motley Idiot, but read the third paragraph. I hope they and I am wrong! https://www.fool.ca/2020/10/30/should-you-put-u-s-stocks-in-your-tfsa/

[CommonCentsforDollars]

3rd paragraph is in regards to Dividends. We don't get dividends on this stock. 2nd paragraph is applicable for TLRY :  As long as a stock trades on a major exchange like the TSX, NASDAQ, NYSE, you’re okay to include it in your TFSA. There are many designated exchanges that you’re allowed to buy stocks from to put in there, so you aren’t limited to just Canadian or even North American

[hevin]

I remember Irwin or Merton saying they were hoping to pay out divvies at some point. That's what worries me. And that's why I want my shares on the TSX, not NASDAQ. Divvies won't happen very soon methinks, but with Irwin and his Blitzkreig announcements, you never know!

[CommonCentsforDollars]

In the future it would be nice to collect a divy. I don't expect that to happen for a few years,.. we are in the growth stage and a divy pay-out right now would be irresponsible. Hopefully in the future, because when that event happens the stock becomes a whole lot LESS volatile as it brings in the hold it and collect divy crowd.  cheers momo

[hevin]

for shitz n giggles, just found out from broker that I took a 225$ currency loss on the transfer. Pizzed off!

[WeeFeeRadz]

This post has been removed in accordance with Community Policy

[Shazam57]

My brother called up TD cause of the share mixup of nasdax to the tsx. He got a $100 credit. 

[WeeFeeRadz]

This post has been removed in accordance with Community Policy

[Shazam57]

That guys laugh. Would be an awesome alarm tune.

[Oldweed]

Yep, US will be looking to grab every penny they can if and when TLRY announces a divy.  Currently TLRY has no divy and you will have ample time to sell if and when they announce one and repurchase TLRY on the TSX, so worst case scenario it costs you 20.00 to repostion and avoid any IRS issues.

[Don773]

My understanding is that on canadian side it should not be a taxable event as there was no buy and sale transaction taking place and it is just share conversion taking place with no change of value at the conversion time (different number of shares x 0.8381 ratio at USD converted price). If anybody on this board is a professional accountant and would dare to provide opininion that would be great