Ann: Megachips License Agreement, page-346

Not an accountant of any stripe, but:
What's the economics of selling BRN shares:

50% of tax after 12 months on capital gain, say 23%

Likely dividends:-
>80% of the business will be IP licence which has ~95% profit.

We have sunk costs, accumulated tax losses for n years, so the company may have a tax holiday for a year or two.

For a sale of $100k, most of which will be capital gain once we pass $2 share price, tax will be >$20k.
So that's <= $80k net of tax.

What sort of dividend will BRN be paying in a year?

My guess is that it will be well north of 5% because of the nature of IP sales (Norman Lindsay anticipated this with the Magic Pudding). Say 6%.

Now where will interest rates be at the time, ... hopefully not more than 3%?

So, if there is a need for a lump sum, you've gotta ask yourself one question:
... would it be worthwhile borrowing the money rather than selling BRN shares ... You do the maths ...


Not financial advice, just something to ponder.