Ann: Orocobre and Galaxy Merger - Announcement, page-658

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moriwaki

2,582 Posts.

204

04/08/21

06:20

Post #: 55008701
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Originally posted by ezirida: ↑

even if the $ value changed there is no CGT event in the scrip offer t/o because you as a holder have not sold anything.. you have not transacted in any way, merely held an instrument that changes ID

the CGT event happens when you do something.. such as sell your ORE shares

Don't quote me on this but I am going to wing it and imagine that at the point the ORE shares are sold, to work out the cost base, you take the price paid originally for the GXY shares and divide by 0.569.. so if I paid $3.00 for 20,000 GXY it would work out to be the equivalent of $5.272 for the 11380 ORE i would receive in the scrip offer.. so if I sold 11380 ORE for $10.00 it is the equivalent for CGT purposes of selling 20,000 GXY @ $5.69.. of course brokerage exists for the purchase of the GXY and the sale of the ORE.. all part of the cost base but either way the taxable CG is the same

however.. what may happen is the roll over/non roll over of the CGT discount.. because the instrument/equity changes name, i'm not 100% sure if the 12 month 50% CGT discount applies from the date of purchase of GXY shares, or from the date of issue of the ORE shares

not too fussed anyway because I won't be selling them !

Expand

I am going to wing it even more till someone smart helps. This system will work ok for me. I'm no mathematician.

Eg.
Galaxy Shares 1000
converts to
Orocobre Shares 569

To convert back for cost basis569+75.74% = 99.99606

Works up to 50000 and only 2 shares out. $10 worth.

* Not financial advice

GXY Price at posting: $4.82 Sentiment: Hold Disclosure: Held
2 Upvote

0 Great analysis

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