The Wyoming Reserve Launches Second OZ Fund With ‘Smart Liquidity’ Feature

The Wyoming Reserve Opportunity Zone Fund Corporation announced an offering of up to 10 million shares of its common stock at $11.50 per share for an aggregate offering amount of $115 million, pursuant to Rule 506(c) under Regulation D promulgated under the Securities Act of 1933.

The Wyoming Reserve closed its initial common stock offering after raising approximately $26 million from accredited investors.

“Inflation, geopolitical tensions and economic uncertainty have prompted many sound money investors to turn to gold and other precious metals to help protect their wealth,” said Josh Phair, chief executive officer of The Wyoming Reserve and a precious metals industry veteran. “The Wyoming Reserve seeks to provide investors with an avenue to access alternative asset classes, with the goal of potentially minimizing tax liability typically associated with the physical ownership of gold and silver.”

The core business of The Wyoming Reserve is generating income from the purchase and sale of precious metals, as well as the fee income from vaulting, transportation, fulfillment, and metal availability services for commercial and industrial customers in a high-security, precious metals-focused vault facility. Utilizing these strategic drivers of profitability, The Wyoming Reserve aims to provide investors with returns exceeding those of owning physical gold and silver, which have achieved a 14.2% combined compound annual growth rate over the past five years, according to data from the LBMA.

The Wyoming Reserve is located in an approximately 70,000-square-foot facility in a designated opportunity zone in Casper. Over the past few years, Wyoming has been ranked first for both business tax climate and as a “sound money” state by The Tax Foundation and the Sound Money Defense League & Money Metals Exchange, respectively. Wyoming also does not impose a tax on silver or gold, has no corporate state income tax, no personal state income tax, inventory tax, franchise tax or occupation tax.

Under The Wyoming Reserve’s repurchase policy, investors may opt in to a share repurchase program after holding their investment for a year, whereby they may request to have The Wyoming Reserve repurchase up to 1% of their shares monthly; up to 12% annually. For investors that elect to enroll in the “smart liquidity” feature, repurchases will be at the stated quarterly share repurchase value and may qualify to be taxed only on appreciation at long-term capital gains rates. Also available to shareholders is the option for investors to request the repurchase of some or all of their shares at the stated share repurchase value on a quarterly basis, provided they have held their investment for at least one year.

An investors ability to have its shares repurchased is limited to 5% of outstanding shares of The Wyoming Reserve each quarter, on a first-come-first serve basis. Additionally, any repurchases are subject to contractual obligations or regulatory considerations of The Wyoming Reserve, the terms of its preferred stock, as well as compliance with Wyoming and federal law.

The vault’s location in a qualified opportunity zone, or QOZ, may allow investors to benefit from federal incentives available for long-term private investment in certain census-designated tracts by allowing tax-free growth on gains from QOZ investments that have been held for a minimum of 10 years.

“Our investors avoid the 28% long-term capital gains collectibles tax that comes with physical ownership of precious metals and have an opportunity to enjoy tax-free growth on any appreciation from their investment in The Wyoming Reserve,” Phair continued. “We believe that the combination of tax advantages, the asset class and our team’s breadth of experience presents a compelling opportunity.”

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