Spinoff of Agex Therapeutics (AGE) from Biotime (BTX)

Biotime spun off Agex Therapeutics effective November 28, 2018 in a transaction that will be taxable to shareholders. Agex Therapeutics began normal trading on the NYSE on Thursday, November 29, 2018.

The information for these instructions is from the IRS form 8937 posted in the Investor Relations area of the Biotime web site. In the form 8937 Biotime posted, they give an estimate of the dividend and return of capital portion of the total value of the distribution. It further states this allocation between dividend and return of capital may change depending on Biotime’s earnings.

 

This transaction will require multiple entries. These will be a dividend cash distribution, a return of capital cash distribution and a buy transaction of Agex. The final transaction will be the sale of any Agex fractional shares. Most of the information below is based on the information available from form 8937 posted on the Biotime web site.

The total value of the distribution was $.304 per BTX share. Dividend portion is approximately 96.872%. No ex-dividend date has been found on the Biotime web site or other security information sites that usually include this information.

 

The Cash distribution Entry or Entries

Go to Transactions > Dividend or Distribution or Accounting > Securities > Cash distribution depending on the version of the software being used. Here is the information you need to complete this portion of the spinoff.

 

  • Date: 11/28/18
  • Company: Biotime (BTX)
  • Amount: (.29449 x # of Biotime shares owned).
  • For example, if you owned 100 BTX shares enter 29.45 (Do not carry cash amounts out more than 2 decimal places.)
  • Transaction Type: Dividend
  • Ex-Dividend date: 11/28/18 (Use the payout date since no other has been made available)

Myiclub allows you to enter the return of capital portion at the same time as the dividend. Click the link that starts ADD ANOTHER DISTRIBUTION TYPE. This will cause another menu to appear to enter the return of capital. Here is the information to enter that portion of the distribution.

  • Type: Return of Capital
  • Amount: (.00951 x # of Biotime shares owned)
    • For example, if you owned 100 BTX shares enter .95 (Do not carry cash amounts out more than 2 decimal places.)
  • No ex-dividend date is needed for a return of capital transaction.

 

The Buy Transaction

Since this can be a fully taxable transaction the holding period for AGE starts the day of the distribution and not the day BTX was acquired. A buy transaction on the distribution date will give such a holding period. Here is the information needed to enter the buy transaction for this spinoff.

  • Date: 11/28/2018
  • Company: Agex Therapeutics (AGE)
  • Shares bought: ( # of shares of BTX owned x .1)
  • For example, if you owned 125 BTX shares enter 12.5 here. (125 x .1). If your result includes fractional shares, include the fractional portion.
  • Total Cost: (Dividend amount + return of capital amount) from above.
  • For example, if you owned 100 BTX shares you enter 29.45 as the dividend and .95 for the return of capital. Your entry here would be 30.40 (29.45 + .95 = 30.40).

 

The Sell Transaction

If the shares of AGE bought contain a fractional part, this portion should be sold unless your broker kept it in your account. Keeping the fractional share is unlikely. Here is the information needed for the sell transaction.

  • Date: 11/29/18
  • Shares sold: The fractional portion of shares purchased above.
  • For example, if you owned 125 BTX shares your buy would have been for 12.5 AGE shares. You would sell .5 shares leaving you with 12 after the sale.
  • Total proceeds: Enter the cash-in-lieu amount reported on your broker statement.