Replies to post #324 on Vitamin Cig (fka VCIG)

[lesgetrich]

Since I wrote that message, I have had a chance to see their SEC preliminary prospectus filing. They've indicated that they are doing a few things that are a little different than what would be considered the normal process.

First, they have valued the VCIG shares at a maximum of $.01 and this will be the price on the XDATE that will be subtracted from the MCIG pps. However, on the distribution date, which is 30 days later (the date we get our shares), MCIG gets to determine a new value (IPO price) based on the then current value of VCIG that will be what we report to the IRS on our taxes (and which they can apparently deduct as their business expense). However, they are not required to list the shares on the OTCB until 90 days after the XDATE, at which time actual trading begins. Presumably this is so that they can control the listing date so that it comes after their next earnings report which should include some VCIG sales figures (thus hopefully forcing up the opening bids).

In short, we still don't know what the dividend value will be and probably won't know until 30 days after the XDATE. I've been discussing this in more detail on the MCIG board.