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Re: mountains1 post# 47712

Friday, 11/07/2014 2:05:15 PM

Friday, November 07, 2014 2:05:15 PM

Post# of 112680
The MCIG pps will be reduced by the GAAP book value (not the same as market value) of Vitacig as calculated by MCIG on the ex-dividend date. This is an SEC and accounting requirement since you are subtracting some value from any company by giving away a dividend. It will show up as an adjustment to the previous day's closing price. Based on what we know today about VCIG revenue, it should be less than $.05/share and probably less than $.02/share. This could change if there is a big pickup in Vitacig revenues between now and then but additional revenue should also drive up the MCIG pps by an equivalent amount. The drawback to us is that while it will make the dividend more valuable smile , it will also increase the tax we owe on it as this will be the value that we pay tax on. frown

Any loss in MCIG value should be quickly recovered when VCIG starts trading and it's pps goes up, thus putting upward pressure on MCIG's pps

Les