Preferred Shares Investments

Class C, Series 4 and 5 are Open for Investment

We are pleased to share some exciting news about the financial future of your co-op. As many of you know, in 2017 Viroqua Food Co-op utilized the New Markets Tax Credit (NMTC) Program to support our store expansion. This federal program provided access to vital financing, but it also came with a seven-year compliance period during which certain restrictions limited our ability to raise capital through traditional means - such as the sale of Preferred Share Stock.

That compliance period has now ended. With the NMTC requirements behind us, we are once again able to offer Preferred Shares to our owner-members. This marks an important moment for our co-op: a return to one of the most direct and cooperative ways we raise capital - by turning to you, our community of owners, rather than outside investors.

WHY PREFERRED SHARES?

Preferred Shares provide a way for owner-members to invest more deeply in VFC.

These shares:

  • Are available to current owner-members of the co-op living in Wisconsin for the majority of the year.

  • Strengthen our financial position, ensuring we can weather challenges and pursue opportunities.

  • Pays dividends annually as declared by the Board.

  • Keep local investment opportunities right here in our community.

In the past, investments from owner-members through Preferred Shares have made possible major steps forward, including our successful expansion. They gave us the financial stability to grow, better serve our community, and increase our support of local farmers and producers. Your investments have always been a cornerstone of our co-op’s success.

WHY NOW?

As we move beyond the NMTC period, VFC is focused on strengthening our balance sheet and preparing for the future.

Selling Preferred Shares now allows us to:

  • Pay down debt from the expansion era.

  • Build reserves to support ongoing operations.

  • Position ourselves for the next chapter of growth and resilience.

We are proud of the progress we’ve made together over the past seven years. The ability to once again raise capital directly from our owner-members is both a celebration of how far we’ve come and a commitment to keeping our co-op locally grounded.

VFC shares are $25 par value

Class C, Series 4, requires a $1,000 minimum investment (40 shares) and earns 3% annual compounded interest.

Class C, Series 5, requires a $10,000 minimum investment (400 shares) and earns 4% annual compounded interest.

Thank you for your continued trust, support, and ownership. Every purchase, every vote, and every investment you make strengthens Viroqua Food Co-op - not only as a grocery store, but as a community institution rooted in cooperation and care for Viroqua and the Driftless region.

If you are interested in learning more about Class C Investments, have a question about your current Class C Investment or the Class C Investment schedule for redemption, please reach out to:

Thanks to all of our investors for your support of the co-op!

Class C Redemption

According to Wisconsin Cooperative State Statutes, Class C redemptions are approved at the discretion of the Board of Directors to protect the co-op's assets. Redemption requests are intermittently scheduled based on the current economic environment and the fiscal health of the Cooperative.

The redemption schedule is full as of January 2024.

Contact Angela Chown to learn about the next opportunity to request a redemption.

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