Sundial Acquisition of Alcanna

GBiasini

Sundial purchased Alcanna for $1.50 cash and 8.85 Sundial shares for each Alcanna share. Assuming that the cost base is reduced by the $1.50 cash and the balance of the cost base "rolls over" to the Sundial shares, how would I show this?

VidasMatelis

Lets say 2022-04-01 Alcanna price was 10$ and you had 50shares.
All transactions for 2022-04-01:
TransType: ReturnOfCapital, SymbolName:Alcanna, Qty: 50, Price: 75$ Explanation: (50$x1.5=75$)
TransType: SymbolTransferOut, SymbolName:Alcana, Qty: 50,Price: 10$
TransType: SymbolTransferIn, SymbolName :Sundial, Qty: 50, Price:8.85, CostBasisOverride:

Please try above and see if that makes your reports look OK.

GBiasini

The 1200 shares of CLIQ became 10620 shares of SNDL. Unless I show the "price" of the CLIQ shares at their original amount, a loss will be shown but that book value should roll over to the SNDL shares. Do you agree?

GBiasini

I should also note that, since SNDL trades on NASDAQ, its shares are denominated in US$. I assume that changes the entries somewhat?

VidasMatelis

Was 1.50$ cash in CAD or USD? In CAD my transactions would be:

GBiasini

I think I have it figured out with thanks to you. I have 2 different portfolios set up, one for CAN$ stocks and one for US$ stocks. So, here is what I have done.

C$ Portfolio TransType: ReturnOfCapital, SymbolName:CLIQ, Qty: 1200, Price: 1800$ Explanation: (1200$x1.5=11800$)

C$ Portfolio TransType: SymbolTransferOut, SymbolName:CLIQ, Qty: 1200,Price: 9.05$ CostBasisOveride -(original cost in Can$ -$1800 ROC)

US$ Portfolio TransType: SymbolTransferIn, SymbolName:SNDL, Qty: 10620, Price:0.70$, CostBasisOverride: Original cost in Can$ - $1800 ROC and then translated to US$ based on exchange rate on April 1, 2022

Let me know if that looks correct. Thank you so much.

VidasMatelis

Yes, it looks OK.