This offering, approved by the California Department of Business Oversight, allows us to offer three series of shares that you can purchase, each with differing terms, and with different annual dividend rates:
Since we began offering the non-voting preferred shares for sale on March 1, 2013 members have responded in a big way, purchasing a total of $1,500,000 worth of shares from our first offering. As of October 28, 2015 we have more shares to sell.
|Series||Cost per Share||Term||Annual
|B||$50||No set term||1.0%|
|C||$500||4 year minimum retention||2.5%|
|D||$500||5 year minimum retention||3.0%|
Here’s the breakdown of B, C and D shares that have been sold and that are still available:
|Series||Number Offered||Price per Share||Number Sold||Number Still Available||Value Sold|
The following table lists investments available at local financial institutions and how they compare to the B, C and D preferred shares that the Co-op is offering to its fully vested members. Rates at financial institutions are as of 10/18/16 and are subject to change.
|Interest Rates and Minimum Investment|
|Bank||Savings Account||CD 4yr||CD 5yr|
|Golden 1 Credit Union||0.15%
with $100 minimum balance
|Bank of America||0.01%
with $25 minimum balance
|SNFC||“B” Share: 1.00%
$50 Share Price
|“C” Share: 2.50%
$500 Share Price
|“D” Share: 3.00%
$500 Share Price
The offering itself is made up of the following three documents that that DOBO has examined and approved:
- Preferred Shares carry no voting rights.
- Preferred Shares can only be purchased by Co-op members who are fully vested in their $300 Fair Share investment.
- No Co-op member can own more than $100,000 in preferred shares in any combination of the series of shares being offered.
- Preferred Shares can be purchased at any time up until the total number of shares purchased in each series has reached the limits stated in the Memorandum of Terms.
- If you have any questions about the Preferred Shares program, please call Cooperator in Chief, Dan Arnett at 916-868-6400, or email him at email@example.com.
Whenever you decide to purchase shares, please follow these steps:
- First read the Memorandum of Terms.
- Download and read the Disclosure Document.
- Download and read the Preferred Stock Purchase Agreement.
- Complete and sign Exhibit A of the Preferred Stock Purchase Agreement.
- Make out a check to Sacramento Natural Foods Cooperative in the amount corresponding to the price of the shares you choose to purchase
- Mail the signed Exhibit A of the Preferred Stock Purchase Agreement along with your check to:
Sacramento Natural Foods Cooperative
2820 R Street
Sacramento, CA 95816
Attn: Preferred Shares
Please do not drop signed exhibit A’s at the store.
Once your share purchase has been processed you will receive a signed Share Certificate.