To Serve and Develop Organic Ag

Since 1988

Homestead Organics

Integrated organic grain processor & farm supply business. Feed mill

Bulk and bagged All farm animals.

Grain handling Precision cleaning. Marketing for food and feed.

Farm Supplies Seed, livestock supplements, fertilizers, pest controls.

Grocery store, book store. Distribution network

Ontario, Québec, Maritimes, NY, VT, MA, PA

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Continuous Growth

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Under capitalized

$40K initially from myself $1M installed.

Choosing low cost equipment Replacing for growth.

Lack of operating capital Patient terms with growers and suppliers. RBC Line of Credit since 2012.

Cost of interest on borrowed money. No fixed land assets to offer security.

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High Cost of Growth

10-20% per year Never optimal production levels Always re-investing the margins

Versus developing working capital.

Always spending for the future Marketing, staff, consultants, plans. Before the revenues arrive.

Costly ventures and innovation Some good and some bad (costly).

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Government Lenders

Canada Small Business Financing Program. Farms not eligible. Apply through your bank. 85% loan guarantee. Finance 90% of capital assets up to $500,000. May require 25% personal guarantee. Costs 2% registration fee and Prime +3%.

Business Development Bank Must be 2 years in business. Flexible terms. Higher risk and cost (prime + 3%).

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Grant Programs

Eastern Ontario Local Food Conference7

Agriculture Adaptation Council: $15,000

NRC – IRAP: $69,400, 3 projects.

CME-Smart: $67,000, 2 projects.

Ag Canada Youth Hire program: $10,000

EODP: $17,142, 3 projects

Atlantic Canada...: $5,000

EODF and FEDDEV: possibly in the future

Private Loans

Promissory notes

Not regulated.

Simple one page, not guaranteed.

Various terms 1-3 years, 6-10%.

Currently $245,000, 14 people.

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Shareholders

I remain the only common shareholder. Special Preferred Shareholders.

Highly regulated. You need a lawyer. No sales to the public.

Accredited, close family, friends, and associates.

Fixed value.

Discretionary fixed annual dividend 6%.

Currently $684,000 from 24 people.

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Expansion Program

Budget $1.8M to move and expand. Mix of subordinate debt & commercial debt.

Pitching to mainstream investors: Merchant banks, equity firms, investment funds,

venture capital, agri-business. Cannot meet their expectations.

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Go back to the organic community

Mission minded impact accredited investors. Offering subordinate debt.

External accreditation as a Benefit Corp. To validate our commitment to a triple bottom line. Our score of 86 out of 200, minimum 80 points. Average 84 out of 1941 sustainable companies. Average 105 out of 504 B Corps.

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Channels to Impact Investors

RBC Generator. $10-million for social and environmental ventures.

MARS Center for Impact Investing Pitch fairs and Social Venture Exchange.

Mission Markets Exchange Financial Marketplace For Sustainable Capitalism.

Slow Money Annual conference, Boulder CO Investing in food, sustainable ag, communities. Pitch fairs and networking.

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