Note: This is for general information purposes. This is not a securities offering. Homestead Organics is not registered with any securities authority.
Homestead Organics is Eastern Canada’s leading organic farm supply and grain processing business. Our mission is to serve and develop organic agriculture. Located between Ottawa and Cornwall, we serve Ontario, Quebec, Atlantic Canada, & New York.
Contrary to the other specialized single-task organic processors, we adopted the mainstream agri-business model. We are a one-stop shop for most organic farm supplies and grain marketing. We outperform our competitors with superior quality, professional expert service, extensive product diversity, ongoing production consistency, a wide geographic reach, and long-term reliability.
We are a community leader in the organic sector. We thrive on collaboration and extensive investment in the sector through volunteer service and sponsorships. We work with growers, livestock producers, and wholesale markets in win-win-win scenarios that provide fair pricing, excellent quality, and equitable returns to all, including investors.
Legally speaking, Homestead Organics is a typical private corporation. We are federally incorporated and Tom Manley is the only common shareholder.
In reality, we have extensive financial support in the local and the organic community. Over 40 private investors were involved in the business over 13 years. Some have since exited and we now have a base of about 25 supporters.
The Organic Market in Canada was counted as $2 Billion in sales in 2008 and reached 2.5% of total retail food sales. The organic sector in North America reports about 20% growth per year continuously for the last 20 years, except the recession year of 2009 when growth slowed to 5%.
Having doubled our business in the last five years, the continuous growth in the organic market and our leadership in the market set the stage to double the business again within 5 years. That represents 20,000 acres of chemical-free farmland and food. To accomplish that growth and more, we need to increase our processing and storage infrastructure, invest in marketing and information systems, acquire compatible businesses that do not have their own internal succession plan, and franchise our model across the country.
Homestead Organics is viable and profitable. Although growth pays off in the long run, it is costly, both in terms of capital investments and operating expenses to grow the business. The challenge is the shortage of capital.
Friends join Homestead Organics in one of two ways, the difference being the tax treatment that the investor prefers on their income:
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Preferred Class A non-voting shares, non-variable redemption value, redeemable at any time depending on cash availability, 6% dividends paid yearly. Dividends from a Canadian corporation receive a dividend tax credit.
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Term loan with a promissory note, typically for 3 years but negotiable, 6% simple annual interest paid at the end of the term. Interest income is fully taxable.