Cenovus Energy Inc T.CVE

Warrants

[Quintessential1]

So the CVE warrants issued with CVE shares for Husky shares are showing a 108% gain.  I asume this gain is the same for everyone as these warrants were all issued at the same time and the same price to all that received them.

From other posters on this board I have become aware that the value will decrease as the leverage decreases and this will happen as we get closer to the expiry date of January 1 2026.

So my questions are:

When will these warrants stop increasing in value?

Is there a tipping point of when the warrants are worth more excercised than sold?

For those that sold warrants instead of excercising them, how was the liquidity?

For those that excercised warrants instead of selling them, what were the fees like to do this?

Thanks to all that help out by responding and GLTA longs!

[RagingBull3]

I have Questions Also.   What's the "Adjusted Cost Base" or Cost of the Warrants??? Warrants were derived from ownership of Husky Commons.   1 HSE share converted into so many CVE shares and warrants.    So Warrants were not "Free".   So the Gain would not be the same for everyone I'm guessing, since everyone bought HSE shares

[RagingBull3]

I bought late on HSE Commons @ $3.67.... as I was focused on the Preferreds.   What was the "formula" for the conversion?     I guess I'm just being lazy and asking/posting it probably helps others also in understanding. Easy enough just to go back and take a look.... but just being lazy. Got to pay TAX again this year......   :(   

[Oasisjunior]

01/01/2026 warrants in my Scotia iTrade account show a cost of $2.1073.....Market price of $10.90.....Return of 374%,,,,, I'll hang on to these alittle longer.. no divy but great growth.

[Husky4000]

Hi Oasis, your cost of acquisition for warrants seems low to me.  I was averaged at 3.95 for HSE and after the conversion, it showed that my acquisition cost for warrants was 3.91... It might be in your interest to know how they calculated it, since more profit is more taxes....or you can average up your acquistion price

[mrbb]

reality is, capital gain from selling cve warrant received as part of the hse share conversion is a 100% capital gain since the warrant received were free.   Any cap. gain or loss from owning hse shares should be crystalized upon official conversion price of husky for the takeover. That's how i see it and it's clean way to calculate the tax.    

[RagingBull3]

Interesting: Husky4000, I'm guessing Oasis got his HSE shares at much lower prices, which would lower his cost of warrants... but you're right, better check because lower cost = bigger gain = More Taxes!!!   Also, interesting that you were given/shown the Cost of the Warrants... I guess I better look harder at my accounts to see if it was given to me.   Mrbb..... You

[Husky4000]

I agree with mrbb's take on the matter....They were free.  But since my broker put an acquisition price tag on it, I'm not gonna complain.  Then again my numbers and Oasis numbers don't seem to correlate, even if he had a 3$ HSE average.  It seems off

[Quintessential1]

I am starting to think that the warrant book value was based on everyone's individual Husky common share book value at the time of the aquisition. My warrant book value is higher than both of yours as I would assume so was my average cost per common Husky share and based on the percentages thrown out I would say around tripple. As I too consider the warrants a transaction bonus the costs

[SQCConsulting]

Or exercise them and buy whatever amount of units you have for CVE shares at $6.54. My take is that they will certainly increase over time but at a comparable rate to common CVE shares. You can make more by exericsing them and either sell the converted CVE shares or keep them in your portfolio to average down your commons share price and add more to your dividend returns. All depends on the