More news on individual investor buy ins which is a good way to buy units without selling additional shares in the company.
Vivakor Creates a Qualified Opportunity Zone Fund to Invest in its Opportunity Zone Business to Manufacture all of its Proprietary Remediation Processing Centers
LAS VEGAS, Jan. 09, 2019 (GLOBE NEWSWIRE) -- Vivakor, Inc. (OTC: VIVK), a technology and asset acquisition company with a focus in the area of natural resources, has recently created a Qualified Opportunity Zone Fund, Viva Opportunity Fund, LLC, which has invested and will continue to invest in Remediation Processing Centers Design and Manufacturing, LLC (RPC), which is an Opportunity Zone designated business in Utah, creating enormous tax savings and return potential for its investors.
“We have received a tremendous amount of investor interest. Not just because of the amazing, potential tax savings and returns that opportunity zones can create, but also because this company has actually developed a proven technology,” stated Vivakor Chief Executive Officer Matt Nicosia. “After having conducted multiple, successful pilots, the company is now scaling its proprietary technology in both the highly profitable global remediation and hydrocarbon extraction industries. We are excited to be doing this in an opportunity zone where our investors can not only benefit, but the workforce will too with the scores of new manufacturing jobs we plan on adding.”
Vivakor is contracting with RPC to build its patent pending technology for remediation and extraction of Hydrocarbons from soil material. The Company is expected to launch its fully scaled RPC unit in the first quarter of 2019, with the production of up to 30 units in the next 24 months to support its business in their Fundamental Revenue Growth phase.
Vivakor operates the RPC’s through its VivaVentures Energy Group Inc. division currently operating in Utah and Kuwait. The need for RPC’s throughout the world applies to any hydrocarbon mixed in soil remediation and certain Oil Sands operations.
“For our investors, this deal makes any of their capital gains investments eligible for tax deferral through 2026, and if they hold the investment for 10 years, any realized gain on the sale of their position will be entirely income tax free”, continued Nicosia. “Any investor will additionally receive a K-1 deduction of up to 80% of their investment immediately, for all of the non-capitalized expenses associated with each RPC. That’s up to a 180% tax shield.”
In addition to the substantial tax saving potential, investors would also be eligible for royalties of 25% of the production on each RPC. Each RPC is projected to generate between $5-6 million per year, or a royalty stream of $1.25 to $1.5 million annually. The investment may also be converted to Vivakor’s publicly traded stock, allowing for a high level of flexibility and liquidity.