What is Local Investing YYC?

Our purpose is to remove barriers for Albertans to invest in the local economy for a sustainable future. We take an active, community-led approach, to partner with local businesses to grow their impact and deliver strong financial, social and environmental returns to our community investors. Our vision is to be a leading impact investor in Alberta supporting resilient, inclusive and stronger communities for the long-term benefit of Albertans.

What is a cooperative?

A co-op is a business owned and governed by its members. Local Investing YYC operates within the co-operative principles which guide how we put our values into practice. You can find the cooperative principles on our About tab.

Investments in cooperatives are generally protected from fraud since the governance structure is open and transparent. The democratic structure of this co-op makes it more difficult for one group or individual to benefit unduly over an investment as members have only one vote regardless of the number of investment shares they own.

What type of businesses does Local Investing YYC support?

Local Investing YYC invests in early-stage private businesses within our community that are aligned with the mandate of our fund (see our Businesses tab). Given the nature of these businesses, the investments are considered high-risk. Local Investing YYC will seek to diversify this risk through a portfolio of investments, however, they are only suitable to investors that have an appropriate risk tolerance.

Why should I invest in Local Investing YYC?

People that invest in Local Investing YYC are generally those that care about their community, and are seeking innovative

opportunities for sustainable investment.

Our member investors receive the following benefits from investing in our cooperative:

• Financial returns comparable to investing in in the private markets impact investing space

• Opportunity to directly invest in local businesses

How can I invest in Local Investing YYC?

First, you have to become a member. To become a member you will need to buy a Class A share at a cost of $250. This membership share gives you one vote. You can then purchase investment shares when they are on offer.

Who decides what businesses to invest in?

It is the responsibility of the Board to evaluate potential investments based on their ability to provide financial, social and/or environmental returns and present these investment opportunities to its members. The members of Local Investing YYC determine, through voting, where the capital will be invested in our community by accepting our rejecting investment opportunities.

As a member in Local Investing YYC, do I get a say on how the businesses are run?

No. The Board is the point of contact for all Local Investing YYC’s investments and members receive periodic updates from the Board.

Members have the right to:

• Elect the board of directors

• Vote on which businesses Local Investing YYC will invest in

• Receive a copy of the co-op Articles and Bylaws

• Review reports on financial performance at the annual meeting and in other periodic updates

• Run for the Board of Directors (unless employed by the co-op or an investee business)

• Vote for changes in the Articles and Bylaws as proposed by the board of directors

• Attend meeting of members

• Participate in occasional member surveys

How does Local Investing YYC invest in local businesses – equity or debt?

Both. Local Investing YYC can provide loans to potential investees or can buy into the local businesses by acquiring an equity stake. When Local Investing YYC issues investment shares, it will explain to members how the capital will be used.

What rate of return can I expect to receive on my investment?

Our investments generate returns either through a capital gain upon a realized sale or from income realized on our investments. The Board targets investments with the potential to generate market-rate financial returns while achieving our sustainability objectives.

How do I determine the market value of my shares?

The “market value” is what you paid for the investment shares at time of purchase. Updates to the estimated market value of its investment shares are provided in Local Investing YYC’s annual financial statements

How long do I have to stay invested?

Investments in Local Investing YYC are for a minimum term of 5 years. During our capital raise more details will be provided in the Subscription Agreement.

Is my investment guaranteed?

There is no guarantee on your investment. Local Investing YYC is a for-profit co-op and expects to secure a return for all investors; however, it is unable to guarantee any return of or on investment.

Are the Investment shares eligible for an RRSP or TFSA?

Yes, Local Investing YYC is a member of the Canadian Worker Co-operative Federation (CWCF). The investment shares offered are eligible for a self-directed RRSP or TFSA developed by CWCF in conjunction with Concentra Financial. It is also possible to transfer existing RRSP and TSFA funds.

Can I transfer Investment shares to a self-directed RRSP or TFSA administered by another financial Institution?

No, not at this time. The only opportunity to hold these shares in a self-directed RRSP or TFSA is with CWCF in conjunction with Concentra Financial.

Will I be charged any fees by Local Investing YYC as an investor?

Local Investing YYC does not charge direct fees to investors. Rather, a portion of the income or gains received from our investments are used to pay for the co-op’s ongoing operating costs and the net returns go to investors.

Should an investor decide to invest through a registered plan with CWCF, they will be charged an annual fee of $55 by CWCF.

Can enterprises who receive financing from Local Investing YYC invest in Local Investing YYC?

Yes. This shows that the entrepreneur has a strong commitment to their business, as well as local impact investing.

Entrepreneurs and other members who are involved in the operation of the business are unable to be directly involved in any of the decisions related to their business that Local Investing YYC makes and cannot sit on the board of Local Investing YYC.