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CareVest MIC Capital Loss on Converted Shares
If you are redeeming CareVest MIC shares this year, you may have to consider the capital loss considerations with the conversion and reevaluation of shares.
For example, Series 2 First Preferred shares bought a few years ago at $1.00 per share would have been converted to amalgamated corporation shares that were converted to Class A shares. My statements show a conversion of 0.09517 meaning 1000 original shares with a purchase valued of $1000 gets you 95.17 new shares. At $9.90 each, the value of the new shares is $942.18. That's a loss of 5.7% or most of one years'returns from the MIC before the conversion.
The current distribution rate for Class A shares is cited as 0.036400 per month, or about 4.4% per year.