Mar. 21 at 6:45 PM
$LEXX (3/3)
The "Gift" is a bet on the remaining 85% of his stake. By tightening the float and funding the CEO's incentives for free, he’s betting that the April 30th MTA results or a licensing deal will drive the stock over
$1.00 organically, making a reverse split unnecessary and his remaining shares far more valuable.
A "self-benefit" theory fails because of the Commissioner v. Fink rule: surrendering shares to a company is a "contribution to capital," not a sale. He gets
$0 cash and zero immediate tax write-off. His cost basis just shifts to his remaining shares, meaning he only "wins" if Lexaria's price eventually skyrockets. He’s essentially burning 100k shares to hope the rest become more valuable.
However - would he do this so far ahead of the reverse split deadline when he could do it one week before if he wanted? Probably not..
Bottom line is that Bunka is preparing for a move so big here that burning 15% of his shares will put him in a better spot…… 👀
