Warrants and SPTCs add zest to new share issues

CIM Bulletin, Vol. 78, No. 877, 1985

ROBERT B. PARSONS, C.A., Partner Price Waterhouse, Toronto

This month, Tax Notes focuses on two features which can potentially "dress up" a new issue of common shares to make the shares more attractive to investors. Attaching warrants to a share issue is a relatively common practice, and recent years have seen an imaginative variety of different kinds of warrants, some of which can be subject to somewhat different tax treatment. A less common financing strategy which certainly deserves some consideration involves the possibility of utilizing "Share Purchase Tax Credits" in conjunction with a new share issue.