It was summed up nicely by jameslast on the other board;

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1. Shareholders of record on December 15, 2011 will be entitled for DDI shares.
2. Each 100 shares of KWG will receive 6 shares of DDI.
3. The DDI shares per se are not taxable.
4. After your receiving DDI shares, the adjusted cost base of your KWG shares that you buy before or on December 15 will reduce by .018 (6*.30/100) per share.
5. The purchase price of DDI shares your will receive is deemed to be 30 cents per share. When you sell them at over or below 30 cents, you will have capital gain or capital loss.

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If there was a buyer at that price and you sold it I guess your capital gain would be $0.30. Nice position to be in.

No, if you sold your DDI at .30, no capital gain or loss, as the DDI acb is .30

Your KWG share acb is effected by the reduction in paid up capital and the related stock dividend. Based on 6 to 1ratio, the $0.30 DDI value reduces your KWG share acb by $0.05 (.30/6).

No. DDI reduces your KWG acb by .018 (6*.30/100) per share

Cheers.