To fund the AD plant at Lower Park Farm, the Co-operative is offering 1,250,000 Withdrawable Shares of £1 to members of the local and wider community.
During the initial offer period, we are inviting investors to subscribe for between 1,000 and 100,000 Shares each.
Residents of the villages and hamlets within close proximity of the farm (listed below) can qualify for a reduced minimum investment of 500 Shares:
Borras | Farndon | Gresford | Holt | Horsely | Isycoed | Lavister | Marford | Parkside | Pulford | Rossett | Trevalyn
This Share Offer is open to individuals over 16 years of age, companies, co-operatives and charities that meet the membership requirements under the Co-operative’s Rules [LINK TO THE RULES]. You may apply on behalf of an organisation / corporate body as long as you are properly authorised to do so.
You may wish to invest as a trustee or nominee on behalf of a child (under 16 years of age). Shares issued in these circumstances will be transferred to the child when they attain 16 years of age. The investment limit of £100,000 includes any Shares purchased as a nominee for
Benefits to Members
Members purchase Withdrawable Shares with membership rights and responsibilities as defined in the Rules. The Shares are created under the Co-operative and Community Benefit Societies Act 2014 and will not be traded on any stock exchange.
Members receive Share Certificates. Details of share holdings will be recorded in a Share Register kept at Lower Park Farm Co-operative’s registered address.
The principal rights of members are:
Use of Investment Proceeds
The capital cost of the project is fixed at £1,250,000. Lower Park Farm Co-operative Ltd is liable for all operating overheads, which are included in the budget.
Shares will be paid off across an anticipated investment period of 10 years. This timeframe may vary, depending on the performance of the AD plant in terms of its biogas production level [refer to Profit and Loss page Table A].
Once all of the Investors have been repaid, i.e. their Shares have all been withdrawn and all interest owed to them has been paid, the only Members left in the Co-operative will be the Founding Members, who will, therefore, be both the initial and final Members.
Shares in the Co-operative will not increase in value beyond their nominal value of £1. Members see a return on their investment in the form of the 8% interest rate, and not via fluctuations of the value of their Shares (as is the case with conventional shares).
The Co-operative will issue Withdrawable Shares to its members. Unlike Transferable Shares, typically issued by a Limited Company, Withdrawable Shares cannot be sold, traded or transferred between Members, and only the Co-operative can buy them back.
Members may request a withdrawal of Shares at any time in accordance with the Rules. Any Share withdrawal will take place at the nominal value of £1.
The withdrawal of Shares is subject to the absolute discretion of the Board of Directors of the Co-operative. Where sufficient funds are not available, the Co-operative will issue loan stock bearing 8% interest, which will be paid off at the earliest available opportunity.
Risks of Investing
Lower Park Farm Co-operative is incorporated with limited liability. This means that the liability of the Members is limited to the amount paid for the Shares.
Limited liability is the condition by which Shareholders are legally responsible for the debts of a company only to the extent of the nominal value of their Shares, i.e. £1 per Share.
Before making a decision to invest in Lower Park Farm Co-operative Ltd, you should consider the specific risk factors described below together with all other relevant information provided.
These risk factors are considered by the Directors to be material in relation to the Co-operative. The Directors will seek to protect investors against these risks through prudent management practices.
These risk factors are not set out in any particular order of priority and should not be regarded as exhaustive or a complete and comprehensive statement of all potential risks and uncertainties associated with the Co-operative.
Additional risks and uncertainties, that are not presently known to the Directors or which they currently deem immaterial, may also have an adverse effect on the Co-operative’s operating results, financial condition and prospects.