Class A Preferred Shares

A Class A Share (which we are calling a "Preferred Share") entitles you to:

• Potential dividends at the Board’s discretion. The target dividend rate is 3.0%, but dividends are not guaranteed, non-cumulative, and only paid when the store is profitable.
• A liquidation preference, meaning that in the event of the Co-op’s liquidation, Preferred Shares would be repaid before common stock (Ownership) but after all debts and liabilities.
• Restrictions on selling, as shares cannot be sold to third parties. They may only be redeemed (sold back) to the Co-op at the Board’s discretion.

Share Purchase Limits

• Share price: $1,000 per share.
• Ownership requirement: Each Owner holds two common stock shares as part of their Ownership.
• Purchase limits:
  • Owners may purchase up to 8 Preferred Shares (due to a 10-share limit per investor under Illinois cooperative law).
  • Illinois residents who are not Owners may purchase up to 10 Preferred Shares.

Redeeming (Cashing In) Your Shares

• Investors may only redeem shares after the Co-op becomes profitable and all loans are repaid. This is projected to take up to 15 years or more, though it is not guaranteed.
• The Board may approve early redemptions at its discretion, but this is not guaranteed.

Full Terms & Legal Documents

The Confidential Offering Memorandum contains the full terms and conditions of Preferred Shares. You can find this document and other legal information on our website here.

This is not an offer to sell securities which is made only by the Confidential Offering Memorandum and only members who are IL residents are eligible to invest in Owner Loans and only IL residents are eligible to invest in Preferred Shares