QUALIFIED OPPORTUNITY FUND

NH LegalCare Trust Series A-2017 (CIK#0001720182) is offering up to $100 million interest in the NH Custodial Partners Qualified Opportunity Fund Series A-2022 (QOF). The QOF was certified by the Internal Revenue Service in Q4-2021.

Seven days after closing, a calculation payment from the QOF investment is distributed. The first distribution of 68% shall be transferred to the investor tax free. Every additional distribution of profits until the final payment at maturity, is also tax free, if the investor holds the securities for 10 or more years. The QOF authorized the issuance of 100 equity-linked notes.

The notes are priced at $1,000,000 per note represents a 1% interest in the gross profits of the QOF. As of July 15, 2022, 50 treasury notes are outstanding and being held for sale par value $1,000,000 per note. The remaining 50 notes are to be issued in 5 tranches of $10,000,000 per tranche representing a 50% interest in the gross profits of the QOF.

Although the par value of each note is $1,000,000, under the IRS code, the basis of each note is $0.00 and increases during the trading cycle. To calculate the participate rate, an investment of $1,000,000 in the QOF on August 1, 2022 returns $685,500 of profit on August 8, 2022. Thereafter until maturity, on each payment date, 1% of the gross profit will be distributed.

Assuming on the first calculation date, the gross profit of the QOZ is $1,000,000, an amount equal to $100,000 is available for distribution to the holder tax free. At maturity, $314,500 shall be distributed plus the final participation payment of 1% gross profit. It is important that the investor realizes that if an inclusion event (sale of the note) occurs prior to maturity, the distributions are subject to a retroactive tax.