Annual Meeting: April 20th, 2010
Company Shops Market will be holding its annual meeting on April 20th!This meeting will be special because you will be voting on an important financial matter.

Owners will receive the annual meeting notice and proxy in the mail. You can review them ahead of time by clicking HERE, but here are the basic details:

The CSM board needs to amend the Articles of Incorporation so that we can issue preferred shares.

 

Why do we need to do this?

The co-op needs a bank loan to cover some of the financing for the opening of the market. In order to secure that loan, a USDA loan guarantee needs to be obtained. To get the loan guarantee, the USDA requires that we have the following two things:

• Raise $800,000 in investment from owners (we’re more than halfway there at $489,000!)

• Meet USDA minimum equity requirements for a loan guaranty for which we have been approved.

We already have a loan commitment from Fidelity Bank (Hooray! Thank you Fidelity). And the USDA has told us that we will receive the loan guarantee once we meet the two conditions above.

And the board has heard your pleas! Preferred shares will also allow owners to invest smaller amounts ($200 minimum*) which will allow people who can’t afford the $2,000 minimum community investment note to participate, invest in the co-op, and help get the market opened.

 *Series A-0 shares will offer a $200 minimum

So to sum up, we need preferred shares for two reasons:

1. The requirements of the bank loan and the USDA minimum equity requirements for a guaranty so that we can close on the loan and begin construction

2. To make it possible for owners to invest at lower amounts than $2,000.

Why do you need to tell me?

You have to vote YES for us to be able to do it! You can do that in two ways:

• Fill out and send us the Proxy form to allow the board to vote in your place (obviously they will vote to create preferred shares!).

  • Where to get the Proxy form:

    • Fill out the Proxy that you will receive in the mail

    • Download and print from the Company Shops website

  • How to send it to us:

    • Mail it to Company Shops Market, P.O. Box 848, Burlington, NC 27216 (quickly please, so it arrives before the owners' meeting)

    • Fax it to Sharon Dent at 584.3994,

    • Bring it to the meeting on April 20th

• Vote YES at the meeting for the co-op to add preferred shares.

We recommend you avoid the voting lines at the meeting by either mailing in or faxing your proxy or filling it out ahead of time and bringing it with you!

Great! So when/where is the meeting?

The meeting will be on April 20th at the Paramount Theatre at 128 East Front Street, Burlington, at 6:15pm. Doors open at 5:00 so that you can vote or submit your proxy before the meeting.

Refreshments:

Irongate Winery will be selling wine down at the market building, so you can drop off your Proxy, or vote, and walk down the street and enjoy a glass of wine before the meeting.

Volunteer Opportunity: Please let us know if you would like to volunteer to bring some simple Hors d'oeuvre (snacks) to go along with the the Irongate wine.

Please note, food is not allowed inside the Paramount Theater.