If I received preferred shares with a redeemable fixed amount under S86 in exchange for common shares that qualified as QSBC shares at that time, I could sell those p.s at any time in the future for LCGE and I have to wait for 2 years to sell the newly issued c.s for QSBC status, correct?
Precisely.
Com. shares issued directly from treasury starts the clock on the holding period when issued at that time.
Pref. shares acquired in the course of a reorg under S.86 continue the holding period from where the previous shares were owned, subject to your 24 months holding period.
Thank you!