Attention, those of you who own Consol Energy Inc. (CNX): CNX has announced a separation of its coal and natural gas sectors into two publicly-traded companies. More information on this announcement can be found here.
You will receive 12.5 shares of a new stock, CEIX, for every 100 shares of your CNX position. On Trade Day, please place a trade in your brokerage account to sell all the shares of CEIX that remain in your account after expiration. Afterwards, you will adjust your account as directed below:
Lattco PRO/AutoPilot Clients: Please sell your remaining shares of CEIX first thing Monday morning. Once the shares are sold please contact us, and we will adjust CNX for you.
1) Take the net amount of the sale of CEIX, and divide it by the total number of shares that you currently own in CNX; this will give you the cost basis adjustment that you will need for CNX. For example, if you receive $2,000 in net proceeds, and you own 600 shares, you would take $2,000/600 for a cost basis adjustment of $3.33.
2) Take the cost basis adjustment figure, and subtract it from the price paid for each of your outstanding bundles of shares on the position. For example, if you had a bundle of shares that was purchased for $35 and a cost basis adjustment of $3.33, you would subtract $3.33 from $35 to arrive at a new price paid of $31.67.
3) After you have completed adjusting each bundle of shares, you will update your band rule worksheets to reflect the adjusted prices. Following this, you may resume regular trading of the position.
If you have any questions, please don’t hesitate to contact us at firstname.lastname@example.org or 1-888-6-SNIDER. We’ll be happy to walk you through the process.