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Raising Capital through Tradable Equity for Cooperatives

Embracing Public Status While Maintaining Cooperative Integrity

At Coop Exchange, we’re building a platform that will offer a unique pathway for cooperatives seeking to raise capital through public offerings of restricted voting investor shares. This approach will allow cooperatives to become publicly traded entities while preserving their cooperative status and safeguarding against demutualization.

Tradable Equity for Cooperatives

• Balancing Public Status with Cooperative Values: Our platform is being built to enable cooperatives to issue tradable equity in the form of restricted voting shares. These shares will allow for trading on public markets, providing liquidity and accessibility to a broader investor base. • Maintaining Cooperative Control: The restricted voting nature of these shares ensures that while investors can benefit financially from their capital injection alongside other members, they do not gain control over the cooperative’s decision-making processes, whether through voting or leveraging debt postions that can come with bonds, preserving the democratic ethos of the cooperative.

Likely to be suitable for

• Expansion and Growth: cooperatives seeking to scale operations, fund significant projects, or increase market presence without compromising their cooperative principles. • Access to Capital Markets: cooperatives seeking broader access to capital and the benefits of being a publicly traded entity.

Our Future Process

We’re building process that encompass the following:

  1. Consultation and Strategy Development: We will start with an in-depth consultation to understand your cooperative’s goals and assess the suitability of a public offering.
  2. Regulatory Compliance and Preparation: Our team will be trained and experienced to assist in navigating the regulatory landscape, ensuring compliance with securities laws and cooperative regulations.
  3. Offering Structuring: We will help structure the offering of restricted voting shares to align with your cooperative’s values and investor expectations.
  4. Market Introduction: We will support in introducing shares to the market, including investor relations and ongoing compliance post-listing.

Maintaining Cooperative Principles

• Member-First Approach: Even as a public company, we’re building a rules based system that ensure that the cooperative maintains its member-first approach, with core decisions driven by its member base. • Ethical Investment Appeal: The unique structure of restricted voting shares is likely to be appealing to investors who value ethical investment opportunities and wish to support cooperative models.

Potential Benefits of Tradable Equity:

• Increased Capital Access: Access to public capital markets can significantly enhance a cooperative’s ability to raise funds. • Liquidity for Investors: Tradable shares provide liquidity options for investors, making the investment more attractive. • Broader Investor Base: Publicly tradable shares open the opportunity for a wider range of investors to participate in the cooperative’s success.

Stay in touch

To learn more about how Coop Exchange plans to build financial solutions tailored to coops, please contact us at listing@coop.exchange.

Please note that the content of this page is for general information and educational purposes only. In so far as it relates to Coop Exchange’s potential services these relate to a future state once the Coop Exchange platform is launched and appropriately regulated. The information is not provided, and should not be construed as the provision of financial advice, the promotion of an investment product. or dealings or arrangements in investments. Investments bring risk and so anyone wishing to invest (whether in coops equities, debt or other securities) should first obtain appropriate advice from an authorised person before doing so, please see also our Regulatory Notice.