Q: On August 16 last year, High Arctic split the company into two entities (HOH and new HWO). For each share of HWO held, shareholders received one-quarter of a common share of HOH and one-quarter of a common share of post-Arrangement HWO.
I haven’t been able to determine how to apportion my original cost between the two. My RBC statement shows that they (RBC) attributed 100% of my existing cost to the new HWO but they attributed an addition $0.50 per share to HOH.
They have a generic footnote that says (re: HOH) “Part of or all of the Book Cost on this security position is unknown resulting in the use of market value… Please contact us to update the statement records.”
I would like to do that, but I don’t know what the amount should be.
On their website, HWO says,
“High Arctic Energy Services Inc. has determined that the fair market value [HOH] shares ... on August 12, 2024 is $1.755 per High Arctic Overseas Holdings Corp. common share”.
Does that mean I should (or could) use $1.755 as my cost per share of HOH, and deduct in from my cost per share of HWO? Other suggestion?
Thanks,
I haven’t been able to determine how to apportion my original cost between the two. My RBC statement shows that they (RBC) attributed 100% of my existing cost to the new HWO but they attributed an addition $0.50 per share to HOH.
They have a generic footnote that says (re: HOH) “Part of or all of the Book Cost on this security position is unknown resulting in the use of market value… Please contact us to update the statement records.”
I would like to do that, but I don’t know what the amount should be.
On their website, HWO says,
“High Arctic Energy Services Inc. has determined that the fair market value [HOH] shares ... on August 12, 2024 is $1.755 per High Arctic Overseas Holdings Corp. common share”.
Does that mean I should (or could) use $1.755 as my cost per share of HOH, and deduct in from my cost per share of HWO? Other suggestion?
Thanks,
5i Research Answer:
We are not tax experts but yes that is our understanding ($1.755) of the situation here.