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Unleashing Local Capital

Unleashing Local Capital. Agenda. What is an Opportunity Development Co-op How does it work What can it do for you Examples Risk versus Reward More on structure, shares, RRSP eligibility. What is ODC?. Local Leadership + Community-Based Financing = Opportunity Development Co-op (ODC).

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Unleashing Local Capital

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  1. Unleashing Local Capital

  2. Agenda What is an Opportunity Development Co-op How does it work What can it do for you Examples Risk versus Reward More on structure, shares, RRSP eligibility

  3. What is ODC? Local Leadership + Community-Based Financing = Opportunity Development Co-op (ODC)

  4. Opportunity Development Co-ops are pools of capital, raised from many investors, that are directed towards local viable business opportunities. Barn Raising in the 21st Century

  5. Opportunity Development Co-op Local Business Eager Entrepreneur(s) Community Investment

  6. How does it work? Gather a group of friends Find a business opportunity Find entrepreneur(s) who want to run it Create an Opportunity Development Co-op to support the union

  7. What it can do for you Spark economic development Stimulate autonomy Create jobs Support young entrepreneurs Aid in business succession ROI to local investors Active/Engaged investing Sense of economic well-being

  8. Westlock Grain Terminals NGC

  9. Battle River Railway NGC

  10. Sangudo Opportunity Development Co-op (SODC)

  11. Nova Scotia • Almost 50 Community Investment Fund Co-ops • All sectors • Approx. 50% are co-ops • First choice investments • Less than 3% default

  12. Is there a Risk?……….there has to be! Evaluate local investment opportunities Make sound, prudent investment decisions Reduce costs of offerings

  13. Social Benefits Share/lend business acumen Investor patronage Word-of-mouth advertising Community pride

  14. Raising Capital via the ODC 1. Basic Co-op Membership Model • Saskatchewan legislation allows a maximum member investment of $1000 up to a maximum of $100,000 2. Co-op can Leverage Member Investment – borrow additional funds 3. Issue prospectus to raise capital via larger share value ( when raising in excess of $250,000)

  15. Prospectus Exemption • Financial Services Commission will set precedent for exemption with the first ODC that applies to them for market exemption

  16. Investment & Shares Research indicates $5K - $10K (range from $500 - $25K+) Simplified Offering Document

  17. Additional Benefit RRSP eligible: New self-directed RRSPs Transfer existing RRSPs ***currently only if you establish afor-profit co-operative

  18. Why a Co-op? One member; One Vote • Mobilize social/human capital • Ownership/connection • Patronage & Word of Mouth • Transparent to investors • Eliminates cliques/domination • Vulnerability

  19. Why? Create awareness & appreciation Enhance leadership capabilities Stimulate local community investment Keeps local capital at home Bolster local economic activity

  20. Why? (con’t) Create and maintain employment Support community autonomy Encourage community engagement Reduce need grants and subsidies Greater sense of community spirit

  21. There is no power for change greater than a community discovering what it cares about. Margaret Wheatley

  22. Questions?

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