Merger Security Exchange between: RDBX & CSSE

wdnkl

How do I record the merger security exchange effective 8/12/2022 between Redbox Entmt Inc  (RDBX) & Chicken Soup for the Soul Entmt Inc. (CSSE)?

The exchange is 44 shares of CSSE for 500 shares of RDBX. The currency amount shows $0.00. 

I see the Macro "Corporate Acquisition (stock for stock) in the pull down enter transactions menu. Is this where I record this merger info? if so, is the following correct for filling info in?

Company Acquired: RDBX
Acquiring Co: CSSE
New Share issued: 44
Price per share for acquiring co: $0.00

Thx for help in advance.....


 

wdnkl

Forgot to mention the exchange ratio is .087 CSSE per share of RDBX. So to be exact that .087 x 500 = 43.50 shares, but they rounded off to 44 shares for 500. 

Tom Young

The box for "New shares" should reflect the ratio, that is the number of new shares for each old share.  The stated ratio is .087 but because of the special circumstances of the merger - no fractional shares to be issued and the calculated figure is to be rounded up to the nearest number of whole shares, you'd use .088 here.

wdnkl

Thank you! I did the change as you said.

Now, I am confused on the "Price per share for acquiring co: $0.00" if I did this right: 

My broker statement says under " Securities Bought and Sold" (each Security is separate of course) and has -500 shares for Rdbx and +44 shares for CSSE. Where it says "Price" for each it is blank and total is 0.00. Yet at the end of the broker's statement it says CSSE is $8.61 per share. 

In the Investment list it is showing CSSE under "Quote/Price" column as blank. The   "Price day change" as -9.14 when in fact Friday the stock was 9.14,  up .37. I don't understand why my Investment list is off.

Maybe this has to do with the 0.00 I put for "Price per share for acquiring co"? 

Tom Young

Put the $8.61in that price per share box.  That will be the initial quote for the new stock.

That price per share box has nothing to do with your basis in the new stock - that remains unchanged.

wdnkl

Oddly today when I opened my Quicken app, it appears Quicken "self-corrected itself for the CSSE/Redbox! Strange.

I used the $8.61 as you suggested, but like you said it didn't matter. The info on the Investment List seems correct now:

Shares: 44 
Quote/Price: blank (markets closed)
Avg cost per share: $132.713405 (correct re research I did)
Mkt Value: $0.00
Cost basis $5839.39
Gain/loss: (minus) -$5839.39
Gain/loss %: (minus) -$100 (not sure why the minus, but not going to worry about)

 I believe you have solved my problem. Thank you so much for your time. Much appreciated.