The investor presentation says on page 20 that the price will be $.05/share. Since it is a dividend, some value has to be attached to the shares for tax purposes - yes the proceeds are taxable. On the XDATE, that amount will be subtracted from the pps of MCIG and you will get that value back when you receive the shares.
Recently, MCIG went through an audit. One of the reasons may have been to verify the value of the company that was being transfered to VCIG and confirm the dividend pps. It's possible that they may have come up with a different pps than what was announced in the Investor Presentation but we do not know since the company did not announce a pps with the recent IPO filing. It could mean that the audit had not yet been completed.
I personally think that they will try to stick to the $.05/share they announced previously. For one thing, they wouldn't want to be accused of misleading investors. For another, it benefits the company not to have too much value subtracted from the MCIG pps and it benefits us not to have to claim too much on our taxes next April.
The actual price that VCIG opens at once trading begins is an entirely separate matter. It all depends on the highest bid and the lowest ask on the opening day which will be about 30 days after the XDATE. The dividend pps will be used as the previous day's closing price so if we open at $.11/share, your portfolio will show VCIG up $.06. It's very likely that if we get some sales figures on VCIG before the opening day, we will open above the dividend pps. It's anybody's guess right now how much that will be.
Keep in mind also that you may not be able to sell your shares on the opening day. It usually takes several days after your brokerage receives the shares before they are available for trading. In the meantime, the market makers will probably have some shares available that you'll be able to buy and trade. The exact mechanics should be revealed soon. We may have a place holder entry on our portfolios with a dummy symbol like MCIGD showing our dividend shares after the XDATE until they are received and made available by the brokerage. We should know on the XDATE what value will be attached to the dividend.
