The Oshkosh Food Co-op, after three years of operation, is launching a recapitalization campaign to strengthen its financial foundation, support ongoing operations, expand services, and enhance community engagement. This follows a successful initial capital campaign that raised over $1.6 million to open the store. Now, the focus is on ensuring long-term sustainability and growth.

As stated above: The Oshkosh Food Co-op is conducting a recapitalization campaign to ensure its long-term financial stability and support its growth after three years of operation. This campaign aims to:

• Strengthen Financial Foundation: By raising additional funds, the co-op can strengthen its financial base, ensure long-term sustainability, and handle any unexpected expenses.
• Expand Services: The funds will help the co-op enhance its offerings, potentially adding new products, services, and programs that benefit the community.
• Enhance Community Engagement: With a stronger financial position, the co-op can invest more in community outreach and engagement activities, fostering a deeper connection with its members and the broader community

We thank you for your membership and appreciate this first step in financially supporting the Co-op.

Purchasing preferred shares in the Oshkosh Food Co-op's recapitalization campaign offers several benefits for member-owners:

• Financial Returns: Preferred shares typically offer dividends, providing a potential return on your investment based on the co-op's financial performance.
• Supporting Community Growth: Your investment helps strengthen the co-op's financial foundation, enabling it to expand services, enhance community engagement, and support local producers.
• Economic Participation: By purchasing preferred shares, you actively participate in the cooperative principle of member economic participation, contributing to the co-op's mission and values.
• Non-Voting Investment: Preferred shares do not carry voting rights, making them a straightforward investment option without additional responsibilities.

Dividends are planned for years the Co-op is profitable, pending Board approval.

Dividend rates are typically double the interest rate offered for loans. Because member-owners could choose a lower interest rate, the actual differences may vary.

In the prospectus, the Board envisions paying both preferred shares dividends and member-owner patronage dividends in the same year. However, there are no guarantees that either will be paid in any year.

We are targeting 2028 for the first payment. This is contingent on profitability as described above.

The repayment order will be:

1. Employee liabilities
2. Vendor liabilities
3. Member-owner loans
4. Preferred capital shares
5. Capital shares
6. Member shares

There is no public trading market for our Shares, and we do not expect one to develop in the foreseeable future. As a result, your Shares will not be readily marketable, and you may be required to hold your Shares indefinitely. Moreover, as set forth in our Bylaws, the Shares may not be transferred or sold except to the Co-op and the acceptance of offers of sale are at the discretion of the Board. Shares cannot be gifted to charity.

Our Preferred Stock may not be sold to third parties. Instead, it may only be sold back to the Co-op or to others, subject to the Board’s approval and at the Board’s sole discretion. Additionally, in case of the death of a Member holding Shares, the Board may, at its discretion, approve the transfer of the Shares of a deceased holder to such Member’s heir, upon the written request of the heir.

Yes

Shares must be purchased in the name of a member-owner. A second subscribers can only be named if they are a married couple or tenants in common.

Ownership shares and preferred shares at the Oshkosh Food Co-op serve different purposes and offer distinct benefits:

Ownership Shares

• Voting Rights: Ownership shares grant you voting rights, allowing you to participate in decision-making processes and have a say in the co-op's governance.
• Membership Benefits: As an owner, you receive various member benefits, such as discounts, special promotions, and access to exclusive events.
• Economic Participation: Ownership shares embody the cooperative principle of member economic participation, contributing to the co-op's mission and values.

Preferred Shares

• Financial Returns: Preferred shares typically offer dividends, providing a potential return on your investment based on the co-op's financial performance.
• Higher Priority: In case of insolvency, preferred shares have a higher priority claim to the co-op's assets compared to ownership shares.
• Non-Voting Investment: Preferred shares do not carry voting rights, making them a straightforward investment option without additional responsibilities