We’re working hard to make investing in the co-op accessible to each of our owners. To that end, we are offering an array of investment products to suit your needs and your abilities. And, aside from the benefit of seeing your money build a brick-and-mortar neighborhood grocery store, we’re offering a highly competitive return on investment. Let’s take a look at the details.

What investment products are we offering?

Preferred Stock

• Share Value: $500/share
• Minimum Investment: $1,000 (2 share minimum purchase)
• Rate of Return: 0 - 5.0%, at your option
• Term: Preferred Shares have no “term” and can be held indefinitely. However, they may not be redeemed (sold back to the co-op) for a period of 10 years. After that, you may sell your stock back to the co-op at any time.

Community Investment Note (CIN)
("Standard")

• Minimum Investment: $2,000
• Interest Rate: AFR* - 3.0%
• Term: 5, 7 or 9 years

("Premier”)

• Minimum Investment: $10,000
• Interest Rate: AFR* - 4.0%
• Term: 5, 7 or 9 years

*AFR stands for Applicable Federal Rate, and represents the federally set minimum interest rate that we can offer. AFR is set quarterly, so feel free to ask us for the most current rate.

Interest will accrue quarterly, is non-compounding, and will be paid annually. After the term expires, the investor will be given 30 days written notice to redeem the note before it is automatically renewed for an additional 3 year term.

How are CINs and Preferred Shares different?

Community Investment Notes (CINs) are small loans from individual owners, with a fixed rate of return (interest) and a fixed term. They are considered long-term debt held against the co-op.

Preferred Stock is an equity investment in the co-op, and has no fixed term, though it may not be redeemed for a period of 10 years. They are different from Common Stock (“Owner Shares”), in that they confer no voting rights to the holder. They are considered equity.

Which security is most beneficial to the co-operative?

Preferred shares will be viewed as equity by banks and other large lenders. This equity will help us secure additional loans, necessary to reach our financing goals.

Who is eligible to be an investor?

Investors must be a resident of North Carolina, and a owner in the co-op. Additional shoppers are not eligible, but can become eligible by upgrading to a full owner share.

Will I get my money back if Durham Central Market is unable to move forward?

The Board of Directors has committed to spending no more than 5% of your investment until they are confident the co-operative can execute its business plan, including the opening and operation of a retail grocery store. 95% of your investment will be put aside safely until that time.

Rendering of possible store design

As owners, it is very important for all of us who can to be involved in the investment campaign. A Preferred Share investment or Community Investment Note (CIN) is an opportunity for an owner who lives in North Carolina to invest in Durham Central Market, and provide crucial funds for the development of the co-op and the opening of a neighborhood grocery store.

If you are interested in investing and would like further information, or to request a prospectus, email invest@durhamcentralmarket.org, or fill out the web-form below and someone from the Investment Campaign will contact you.

You can read this letter from our Project Manager, Don Moffitt. Feel free to ask any questions you may have, or make your investment pledge today by sending us an email or filling out the webform. Following your pledge, we will arrange a time to meet in person- either at home, or in our office- and help you with the investment paperwork.

We are delighted that so many of us care about making this dream a reality. The support you continue to show is an inspiration, and a testament to co-operation in action!

Thank you!

Sincerely,

Board of Directors
Durham Central Market