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hankmanhub

06/05/20 5:36 PM

#287605 RE: JerryCampbell #287599

Jerry, thanks for the reply. But it still not really clear. The division of how many shares are in the portion sold for cash and how many sold for shares? There are many such possible choices. Here are two examples of what I mean:

To keep the numbers simple lets assume you have 100 shares of NWBO with a cost basis of $1 per share for a total of $100. Lets assume that the BP buyout has the following terms: $10 per share cash plus 1 BP share per 5 shares of NWBO. Thus I would receive $1000 cash plus 20 BP shares for my 100 NWBO shares.

So for example:
1) $1,000 - $100 = $900 cap gain plus a $0 cost basis for 20 BP shares.
or
2) $1,000 - $50 = $950 cap gain plus a cost basis of $50 for 20 BP shares.

etc.