Q: Hi,
Our NBLY pharmacy shares were bought out and cash received. In our TFSA we now have shares of Neighbourly Pharmacy Inc temp with a purchase price of 24 cents per share with a total value of $168. I got a letter from itrade indicating these shares cannot be in a registered account subject to 50% penalty. Can you please help me understand what these new shares are?
Thanks,
Kerri
Our NBLY pharmacy shares were bought out and cash received. In our TFSA we now have shares of Neighbourly Pharmacy Inc temp with a purchase price of 24 cents per share with a total value of $168. I got a letter from itrade indicating these shares cannot be in a registered account subject to 50% penalty. Can you please help me understand what these new shares are?
Thanks,
Kerri
5i Research Answer:
In the takeover, shareholders were given Contigent Value Rights (CVR) which allows for an additional payment of up to 61 cents per share if certain financial targets of the company are met in the 2026 fiscal year. Because these do not trade on a recognized exchange they cannot be held in a registered account. It is 'free money' to shareholders if the targets are met. Transferring out of a TFSA should be a relatively easy process with a call to one's broker.