2019 Preferred Stock Offering
In 2017, CEF opened our first Preferred Stock offering, inviting Minnesota residents who become members of the co-op to purchase Preferred Stock and generate Annual Dividends. This Preferred Stock offering raised $501,000, which enabled the co-op to launch its first set of 8 community solar gardens leveraging an additional $14.5 million in outside capital. These 8 community solar gardens enable over 700 members to participate in the benefits of cooperatively owned clean energy, many of them at no cost.
CEF has opened a second opportunity for Minnesota residents to invest in Preferred Stock, with a target offering size of $750,000 and a maximum of $1,000,000. This stock offering will allow the co-op to begin expansion to its second and third phases of community solar projects, as well as scale up our operations in more communities across Minnesota.
Basic Terms of the Class A-1 Preferred Stock Offering:
- Any Minnesota resident to can invest as long as they become a member of the co-op
- Minimum investment of $1,000 (2 shares)
- Offering is open through February 2020
- Preferred Stock will generate Annual dividends from co-op profits paid to investors. The expected annual dividend for Class A-1 Preferred Shares is 6% per year starting in 2020.
- Stock has a 5-year term that will be automatically renewed for additional 5-year terms unless the investor gives notice that they wish to redeem their Preferred Stock for its initial value before the end of year 4.
- Co-op can redeem stock for its initial value at any time; investor can request early redemption with a penalty if co-op approves.
For More Information and To Invest:
Purchasing Preferred Stock is based on review of more detailed materials, including required legal disclosures provided by Cooperative Energy Futures to those who are you interested. If you want to review the details of this Preferred Stock offering to decide whether you want to invest, please contact General Manager Timothy DenHerder-Thomas. We will send you:
- A detailed Offering Memorandum explaining CEF’s approach, plans, the investment opportunity, expected performance, risks, and detailed investment terms.
- Two financial models projecting potential financial scenarios for CEF under conservative and moderate assumptions of future business performance
- The Subscription Agreement, which is the form you will need to complete to make an investment
After sending these materials to you, we can also – at your request – provide 2016, 2017, and 2018 financial records for the cooperative, and answer any other questions you may have. Please contact contact General Manager Timothy DenHerder-Thomas or call (612) 568-2479 with any questions.