Theralase Technologies Inc. V.TLT

Strategy for the Next few Months

[Scorpio2]

I would suggest to all to best utilize the the next few months as follows:

1) take gains out of your TFSA a/c in stock you hold (other than TLT shares) in the 2022 tax year.
2) transfer those proceeds to your bank account. Spend that money or recontribute that amount to your margin a/c.
3) if you currently have TLT stock in your margin a/c, do a specie "in kind" transfer of TLT stock from your margin account to your TFSA a/c in the 2023 tax year in the same amount as what was withdrawn in 2022. You are allowed to do this in the following year after the withdrawl year.
4) in the new 2023 tax year, also transfer in the allowable cash contribution to your TFSA a/c and buy TLT stock or again do a specie "in kind" transfer of TLT shares from your margin a/c to your TFSA a/c based upon the price on the day you execute this transaction in 2023.

This will probably be your last chance to move and protect as many TLT shares as possible in your (tax exempt) TFSA a/c. Once BTD/AA application is made (likely mid to end of December 2022), the FDA will respond to Theralase in 60 days (say mid Feb 2023) on whether or not BTD/AA is granted. If granted, TLT stock goes parabolic. Pharmas circle. Any capital gains on a takeout/JV/etc will be protected from taxation in your  TFSA. Then enjoy the rest of your life !!!!

[Legit62]

I have a strong suspician they may wait till Roger is in the captains chair until the big news arrives, this is his baby, i think Feb, with all his recent share activity

[CAinPlap]

Why wouldn't you just buy TLT in 2022 from the proceeds of other stock sales? Waiting until 2023 could cost more per share. No need to transfer to bank account and transfer back in new year. Unless you like paying transfer fees?

[Scorpio2]

CainPlap,to answer your questions, I'm maxed out on my total allocation to TLT in terms of # of shares and don't want to buy any more in any of my accounts. Also, I hold a lot of shares in my margin account which I can now transfer in large quantities (at one price) to my TFSA in 2023 due to my TFSA sales in 2022. If I were just to buy the TLT shares in my TFSA now, I would end up pushing

[CAinPlap]

You said in your original post to sell existing stocks and transfer the proceeds to your bank account and then transfer back to TFSA in new year. Why not just leave the proceeds in your TFSA in the 1st place regardless of whether used to buy TLT? 

[Scorpio2]

CainPlap....I don't think you are cluing into what I'm doing. By taking cash (a lot) out of my TFSA as a withdrawl in 2022, I can then replace the withdrawn amount in early 2023 with a specie transfer (a lot) of TLT stock from my margin account in a $ amount equal to my earlier $ withdrawl. This way I can move (a lot of) TLT shares in one transaction from a margin account to my TFSA

[CAinPlap]

I get your point but depending on your cost base in your margin account you may either incur capital gains or restricted capital loss on the transfer. You would have to have a lot of TFSA room to affect the stockprice on an openmarket buy IMO. Not saying you haven't presented a decent argument for your strategy but it may have unintended consequences you haven't considered.