Are you an affiliate of a public company and own restricted stock?

If the answer is "yes", you know that restricted stock is governed by Rule 144 and has substantial limitations. These limits include illiquidity, tax ramifications and a lack of diversification. The CopperMoose Fund™ has developed an elegant solution for these issues called the Restricted Stock & Preservation of Principal (RS/POP) Methodology.

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A $7 Trillion Problem

There is a $7 trillion source of illiquid capital in the form of Restricted Stock. Certain classes of Restricted Stock holders are considered insiders of public companies, and are heavily restricted as to how much stock they can liquidate at any given time.

They have limited options as to what they can do with their stock and by the time they are able to liquidate their holdings, the value may have dropped. This fear is top of mind for Restricted Stock owners. The other major concern is the requirement to pay capital gains taxes with each transaction.

CopperMoose Ventures has created a solution to this problem.Our Solution

We've developed something truly unique that we call the Restricted Stock & Preservation of Principal Methodology. RS/POP for short. We are the first exchange-type fund of it's kind to use this proprietary process that allows Restricted Stock holders to exchange their stock into our private placement offering. In return, they receive Class A Units of Ownership in the CopperMoose Fund providing benefits that are currently not available to them such as:

Preservation of Principal: Expected return of the value contributed within 7 to 12 years.

Growth Potential: Financial structure designed to mirror the upside of the contributed security.

Reduced Tax Burden: The CopperMoose Fund will provide a first-year cash distribution that can be used to cover long term capital gains taxes.

Long Term Upside Potential: Remaining capital will operate as a feeder fund to capitalize future venture investments.

Preservation of Principal

Holding much of your wealth in your own company's stock brings inherent risk. If the stock drops in value, so does a substantial portion of your wealth. The CopperMoose fund provides a collateralized return of principal in approximately 7 to 12 years, in cash, held in segregation on behalf of each investor. The return of principal will be in cash, not securities.

CopperMoose will operate under a financial structure that is designed to preserve the investor's original capital contribution. How? It accomplishes this with a portfolio of securities that are expected to generate income in an amount sufficient to return investors’ capital contribution in approximately 7 to 12 years from the closing of the offering. They will hedge a portion of the portfolio against market fluctuations through several commonly used techniques.

Growth Potential

No one wants to miss out on potential gains in their own company's stock.

CopperMoose incorporates a component that provides participation in the future growth of a contributed security or the S&P 500. How? It will utilize a portion of the proceeds of this offering to purchase a long term over-the-counter option (or equivalent) on the restricted stock contributed by each investor (or some other stock or index selected by each investor).

Each option will be structured to grow in value commensurate with the growth of the optioned security. If the option grows in value, it will be liquidated, and the proceeds distributed to the investor. If the market declines, the option is not likely to have any value, but the investor‘s investment will remain protected by the other protection of principal elements outlined.

Reduced Tax Burden

Capital gains taxes should not affect your decision to diversify your portfolio.

What is the CopperMoose solution to allow you to diversify irrespective of tax considerations? It will provide a first-year cash distribution that can be used to cover the long-term capital gains tax that may be due on the constructive sale of the securities after exchange into the fund.

On the first day of April in the first full calendar year, CopperMoose will make a cash distribution to each investor, equal to 23.8% of the amount invested to defray any long-term capital gains tax on the constructive sale of the contributed securities.

Long Term Upside Potential

CopperMoose offers a growth component by creating a CopperMoose Feeder Fund to cover the legal, marketing and operational costs for additional private placements. These private placements will also leverage the RS & POP Methodology. The reserves from these subsequent private placements will be invested into select private ventures and thus provide potential returns to original investors in perpetuity.