Extract to table
Pull the structured facts out of a document: parties, dates, amounts, obligations.
Extract to table / capped-call-regulatory-memo.docx
capped-call-regulatory-memo.docx
Parties
HARKNESS LLP
Optiwave Semiconductor Corp
Ridgepoint Capital Markets LLC
Northvane Financial Products LP
Federal Inc
Counterparties Ridgepoint Capital Markets LLC
Dates
April 10, 2023
May 23, 2023
June 1, 2028
May 30, 2023
May 29, 2023
May 19, 2023
December 31, 2022
June 6, 2026
May 18, 2023
May 24, 2023
Amounts
$250,000,000
$0.001
$94.50
$110.07
$28,750,000
$17,250,000
$11,500,000
$1,000
$73.38
$15.57
Obligations
A above, the premium is a capital expenditure that must be capitalized and becomes part of OWS's adjusted basis in the capped call contracts
The premium is also not deductible as an ordinary and necessary business expense under Section 162 because it represents the acquisition cost of a capital asset (the capped call contracts), which must be capitalized under the general rules of Sections 263 and 1012
To qualify for the end-user exception, OWS must satisfy the following conditions: (i) OWS must not be a financial entity (as defined in Section 2(h)(7)(C) of the CEA and Section 3C(g)(3) of the Exchange Act)
(ii) OWS must be using the capped call transactions to hedge or mitigate commercial risk
With respect to reporting obligations, OWS must comply with applicable trade reporting requirements under SEC Regulation SBSR (Rule 901 et seq
the risk that the counterparties must deliver shares or cash to OWS upon exercise or expiration of the capped calls)