Below is a transcript of a letter that was sent out to member-investors. If you are a member-investor and did not receive this email, or if you haven’t updated your contact information with us in over a year, please update your contact information by emailing firstname.lastname@example.org.
November 22, 2019
The Co+op is now 8 years old. We wanted to reach out to each of you with an update on the Co+op’s financial results and the status of member loan repayment.
As you may be aware, calendar years 2017 and 2018 were financially successful years. It was our third year with net income and our cash at the end of the year was roughly $100,000.
While we are thrilled with these results, we are not yet in a position to begin making payments on the member loans. The primary reason is that our current mortgage loan covenants will not allow us to make payments until we have and maintain at least $200,000 in cash reserves in order to allow adequate cash balance for operations and contingencies.
The original repayment deadline for the member-investor loans is December 31, 2019. At our current growth and profitability rate we will not meet this deadline. However, we are planning a meeting for member-investors on December 18, 2019, a 6:00pm at Project Y to update you on 2018 financial results and repayment plans.
We want to reiterate that repaying our debt to you remains our highest priority. We’ve looked at a few options to modify or change the limitations associated with the mortgage covenants but the best path forward is increased sales and increased profitability.
With that in mind, we need to update our contact information for each member-investor. If you haven’t updated your info with us in the last year, please email email@example.com with your name, phone number, preferred email, and address.
Thank you again for believing in the possibility of a cooperative market in Los Alamos and for your vision and ongoing commitment to our shared cooperative values. We look forward to seeing you in December.
Los Alamos Co+op Board of Directors