I think they said it will be done by the end of third quarter of this year.
With tax it only matters when you sell, the conversion itself wont create a tax event. When you sell it will.
Total dollar value of your Zip sell, MINUS the total dollar value of your original Sezzle shares. That's the easy way.
But if you want to hold for a bit after the deal goes through you'll probably want to know what your new cost basis is for your new Zip shares.
So once the deal goes through, if you want to work out the new cost basis for you new Zip shares, you take the total dollar value of your original Sezzle shares and divide them by the new number of Zip shares. Then it's up to you if you want to hold or sell them
eg Original Sezzle shares. 10,000 shares bought at $5 = $50,000. Your cost basis per share was $5 a share.
- Your original Sezzle shares will convert to 9800 Zip shares shares.
- You then take the original dollar value of your shares ($50,000) and divide them by the number of your new shares (9800)
- This works out to be $5.10 so that is the new average cost basis of your new Zip shares.
- It will be like you had bought 9800 Zip shares when they were trading at $5.10
- You only pay tax when you sell these shares.
