FYI, Check out more explanation on The RadMaxTech.com web site, under the News tabs.
REGRF was a dual listing on the OTC for the Canadian company, Reg Technologies (REG).Reg also traded on the TSX under the symbol RRE.
REG and all its assets were sold to Regi U.S., Inc., its sister company, for Regi U.S., Inc. common stock, (RGUS) in a Asset Purchase/Reverse Merger.
REG then distributed the RGUS Common stock to its shareholders in a Dividend distribution at 1.1 times the original shareholders holdings.
Your original 6700 shares are still valid, without any current value, within the "Empty Company - REG".
Technically REG (RRE & REGRF),is not a shell. Prospective buyers are discussing the purchase of REG and using its original shareholders to populate its new venture. More news about this over the next couple months. Your original cost basis still exists for tax purposes.
The 7370 dividend shares of RGUS will be a taxable event in the US. Form 8937. posted on the RadMax Web site, news/investor updates/March 27,2017 uses three different dates to establish suggested basis for the dividends value of $0.075 p/s. You have the option of writing off your original REGRF/RRE shares as "abandoned or worthless" by contacting your broker and having your shares removed from you portfolio.
Or, if you think the potential value of keeping your original REGRF/RRE shares hold more unknown potential then the tax consequences of the dividend, then that is a subject for you and your tax advisor.
Now, to the point of the 7370 shares still being held in your brokerage account without value and being listed with a cusip number. That continues to exist only with those brokerages that have failed to update their system, per instructions from our transfer agent, Nevada Agency and Transfer Company, NATCO.
The instruction were delivered to all brokerages on December 5th, 2017. Only a few brokerages are negligent and will need to contact Tiffany Baxter, our representative at NATCO for instruction on removing the Restrictive Legend, currently limiting the removal of the cusip legend on your REGRF/RGUS account. NATCO holds our corporate council's legal opinion to removal all restrictive legends.
This has been a problem with a number of smaller brokerages but once they are reminded to follow instructions, your account will be updated. Once everything is corrected, you should show two listing on your statement, One being your original REGRF with 6700 shares, Assuming you don't abandon them and 7370 shares of RGUS.
My take on your statement is correct: 1) You will have a taxable dividend. You/your tax advisor can determine if you write off your original REG stock.
2) Contact your broker and have them communicate directly with NATCO at 775-322-0626 to clean up the listing on you brokerage accounts.
Hope this helps
Cheers
AI
