Petaquilla Minerals Ltd. (fka PTQMF)

[VBgood]

MJK, maybe you can refresh my memory and rathebefishn that spin-off has to satisfy certain criteria we discussed them before:

To avoid taxable consequences, the transaction must be structured carefully to abide to the rules of Section 355, which are summarized as follows:

CONTROL

The parent company must have “control” of the subsidiary immediately prior to the spin-off and must disburse to the shareholders a controlling amount of subsidiary stock. Normally, the parent is required to distribute all of its stock in the subsidiary. Control is defined as stock possessing at least 80% of the voting power and at least 80% of each class of nonvoting stock.

ACTIVE BUSINESS

Section 355 also requires that both the parent and subsidiary be engaged immediately after the spin-off in an active trade or business in which each has actively operated for at least five years prior to the divestiture. ... ...