Support the growth of Outpost with local dollars and increase the positive impact we can make together, in your community. Outpost owners can participate in two investment opportunities: Class Two Stock and Owner Loans.
Our goal is to raise $750,000 in combined Stock and Loans from owners by April 30, 2014.
Class Two Stock
Class Two Stock is available for purchase with a 4.25% dividend
It is available to Outpost owners who:
1. Have paid their full $200 voting share (Full Fair Share)
2. Are residents of the State of Wisconsin
What is Class Two Stock?
• An additional investment of equity into our Co-op
• An opportunity for Outpost owners to invest in the Co-op’s expansion into Mequon
• An investment stock only – it does not carry any additional rights (voting or other)
What are the benefits to Outpost?
• The stock is equity and not debt, so it strengthens the Co-op’s balance sheet
• The stock purchased by owners reduces the amount of money that Outpost needs to borrow from other sources
• The stock can be sold to Outpost owners without registering it with the SEC or any state securities
• The Outpost board of directors has full control of the stock offering, therefore they can make decisions and related policies that are good for the Co-op
What are the requirements to purchase?
• $500 minimum purchase in increments of $100. Maximum purchase set by the board at 1,000 shares per owner, or $100,000
• Owners must receive and review the Confidential Offering Memorandum document, available by contacting: firstname.lastname@example.org
• Owners must sign a Subscription Agreement once the decision to purchase is made, and are bound to the terms of this agreement
Next steps for Class Two…
For a complete offering description including requirements, risks, and tax implications, please contact: email@example.com
Outpost Owner Loans
Outpost’s Owner Loan Program started in 1985 as a method of obtaining low interest financing to improve the goods and services of the Co-op. Money from the program has been used to add new equipment, relocate our business, remodel various departments, upgrade our technology, open our second and third store locations, and remodel our flagship store. At this point we are opening up the program once again for additional financing on a 4th Outpost location in Mequon.
Since owner loans are subordinate to bank debt and are not secured with any collateral, they provide Outpost with a strong equity position in the eyes of commercial lenders. In addition our owner-investors appreciate the opportunity to support a project that keeps money in the local economy.
Eligibility & Participation
Outpost Natural Foods offers participation in the program to all owners who are current in their Fair Share payments and are residents of the State of Wisconsin. Unlike Class Two Stock, owners do not have to fully pay their voting share to be eligible.
Outpost Owner loans (notes) are offered at face value. The offering price (value) has no particular relationship to the value of Outpost Natural Foods Cooperative or its operating results. The notes are not transferable. They cannot be sold, assigned or transferred to another person. No market exists for these loans and none is expected to develop.
These loans involve risk and should be made only by owners who have determined that it is in their interest to support the growth of the Cooperative. All loans are unsecured and subordinated.
For additional information on owner loans, current rates and terms, please contact Outpost’s finance manager Jo Smith (firstname.lastname@example.org).