Replies to post #418116 on Anavex Life Sciences Corp (AVXL)

[bas2020]

You only pay taxes on what you sell. And he'll only sell what he needs to cover the cost+taxes. The rest he'll let ride.

[attilathehunt]

This is how it should work...

Let's say the share price is at 9.50 when exercised....

Value = 500,000 x 9.5 = 4,750,000
Cost = 500,000 x 1.6 = 800,000
Ordinary Gain = 3,950,000

Tax on Gain (Fed, NY State and NY City) will be appx 44% (30,10,4)

3,950,000 x 44% = 1,738,000

Therefore, at 9.50 per share...267,158 shares will be sold atto cover Cost and Ordinary Gain.

When Form 4 is filed, Missling will receive appx. 232,842 shares.


I believe this is how it will go down.