In 1994, I have bought 5000 shares of Vista Gold (VGZ) with a cost basis of $14,457.50.
On May 10, 2007, Allied Nevada (ANV) commenced operations after being spun out of Vista Gold Corp. Under the Arrangement Agreement, Allied Nevada issued 38.9M shares, of which 26.9M were issued to Vista Gold in exchange for Vista Nevada Assets along with cash. For each share of Vista that a shareholder owned immediately prior to the effective time of the arrangement, they will receive, (a) one new share of Vista, (b) 0.794 of an Allied Nevada Share, and (c) any payment they are entitled to receive in lieu of a fractional share of Allied Nevada. According with a Vista case study, Vista distributed ANV shares to shareholders on a basis of 0.8 (very close to 0.794) ANV shares for each VGZ share held.
Can you please help me out how to figure the cost basis for the 3970 ANV shares I received on 05/11/2007 and sold on 06/11/2009?
Your help is greatly appreciated. Thank you. Nick