Hi Maraco, I can't really advise you on this but can pass on what my accountant advised in relation to my situation. She intends to treat the situation as a sale and purchase, i.e. I effectively sold my shares on 16 June 2010, the date the deal took effect, and will use the value of entree shares on that date (which from the information available on the TSX site was between $2.00 and $2.04 on that day) and use the exchange rate that PMH published as the rate to be used to calculate the cash component. From this, we were able to establish that the sale price was a little over 28c Australian per share. Hence any Capital gain or loss should be calculated from this price as at 16 June. The accountant then advised that the buy price would probably be one or either the price of entree shares on 16 June or at the date of their issue to us (yet to see the certificate to see what date this might be but it is, in theory, 30 June, since this is when they were supposed to start trading our shares on the TSX, this has not happened yet though - need to watch the TSX site, code ETG, to check when our 15M shares are added to the 97M existing shares that are on the registry). Hope this helps - note that the accountant said there were other ways of dealing with it though - obviously depends what is more beneficial in your circumstances. I will just about break even so am not worried about it being treated as a sale and purchase.
PMH Price at posting:
26.0¢ Sentiment: Hold Disclosure: Held
