Frequently Asked Questions:What is a Class C preferred share? A preferred share of Just Local Food Cooperative is a special type of stock that regularly pays a set amount of money out of cooperative profits called dividends. They are called preferred because they have preference in terms of dividend payments and distributions in case of bankruptcy.
How is interest paid? Every year the Board of Directors will declare a dividend. The dividend rate for Class C, Series 1 stock is 5%. Interest is compounded annually, and reinvested in the cooperative in your name.
When does it mature? Class C preferred shares have no fixed maturity date. In order to benefit the cooperative and community, these shares should be considered long term investments.
Will the rate change? No, the annual dividend rate is fixed at 5%.
Why is Just Local Food offering preferred shares? The operating money for our cooperative comes from two main sources – profits from the cooperative business that are retained and used as working capital, and borrowed money. Preferred Shares offer a permanent source of working capital for the coop and a flexible financial tool for investors.
What will Just Local Food use the money for? Funds raised will be used for a variety of expenses and investments including things such as property acquisition, equipment purchases, and additional product for customers.
Are shareholders members of the cooperative? No, shareholders are simply community investors. Just Local Food is a worker owned cooperative, and as such the only members are worker/owners that have invested equity in the co-op and possess a Class A share.
Once I own stock, can I vote in JLF elections? Officially organized as a worker owned cooperative, the only voting members are workers. Just Local Food has historically, and will continue to, listen to the needs of our community, including shareholding investors.
What if Just Local Food Cooperative fails? As with any stock or bond, the investor is at risk should the company fail. Class C shares do have preference over Class A shares.
How do I get my money back? Class C Stockholders may request the Cooperative’s Board of Directors to redeem their stock at any time. Any redemption request requires approval of the Cooperative’s Board of Directors.
I like what you're doing, can I get a share without collecting interest? Yes, you can buy shares that do not collect a dividend, and it will help the co-op even more!
Will this affect my taxes? You will need to consult your tax advisor to learn how these preferred shares might affect your taxes. Just Local Food Cooperative will send out the appropriate forms to shareholders each year they receive a dividend.
What if I move out of state? If you move, please notify the Just Local Food Cooperative Board of Directors as laws vary by state. You'll need to consult your tax advisor for personal tax consequences.
Contact us for more info or a preferred stock pack.
This is a conceptual drawing by our friend Lori of the front of the possible new store. (this picture isn't a good representation of the drawing - sorry, the real one is at the store) There will be bike and handicap access, several vehicle parking spots and ample on-street parking nearby. As with any space we will occupy, it will undergo a thorough environmental analysis and all steps will be taken to ensure the safety and quality of the food , workplace and social environment for us all.
Another friend, Ken, drew a quick layout sketch for us. This shows how we would fit now, then expand over time to occupy a larger footprint. Getting excited? So are we!
