Public Offers - CCUs - Care Together Program

CCUs

Public Offers - CCUs

Step 1 of 12

Your co-operative – information for disclosure document cover page

1. Co-operative Name(Required)

Insert the full name of your co-operative, as it appears on the co-operative’s certificate of registration, in the space provided.

2. Registration Number(Required)

Insert the co-operative’s registration number, as it appears on the certificate of registration, in the space provided.

3. Select the State or Territory in which the co-operative is registered.(Required)

4. Australian Business Number (ABN)(Required)

Insert the co-operative’s ABN in the space provided.

5. Registered Office location(Required)

Insert the co-operative’s registered office address in the text box.

6. Other Address(Required)

Insert the co-operative’s website URL and its principal email contact address.

7. Securities to be offered

Invitation to subscribe for Co-operative Capital Units called [name or number of securities to be offered].

Guidance

A CCU offer must have a unique issue number or a name, which distinguishes it from other CCU offers. The name can describe the purpose of the CCU offer.

If the CCUs do not have a name, then they must have a unique number. For example, a co-operative’s first CCU offer in 2020 could be called “Series 1 Co-operative Capital Units 2020”. Subsequent offers could then be called “Series 2 Co-operative Capital Units 2020” and so on.

The name or issue number will be recorded in the register of CCU holders, maintained as part of the co-operative’s records.

Instruction
Insert the name or unique number of the CCU instrument in the space provided.

8. Type of disclosure document(Required)

[Offer information statement/Prospectus]

Guidance

There are two types of disclosure document for a public offer of Co-operative Capital Units. For offers where the amount to be raised is less than $10 million, co-operatives can prepare an offer information statement. All other offers must prepare a prospectus. An offer information statement provides a lower level of disclosure than a prospectus.

Instruction
Select the type of disclosure document.

9. Applicable legislation(Required)

This disclosure statement is prepared in accordance with [s250 Co-operatives Act 2009 WA/s337 Co-operatives National Law].

Instruction

Select an option.

10. Offer closing date

This Offer is open for subscription until […insert date…].

Guidance

Disclosure documents are subject to a seven-day public exposure period after lodgement, during which the co-operative cannot accept any applications for the CCUs. Once the exposure period has concluded, the offer is open. The period of time the offer remains open is a matter of choice for the co-operative, but it cannot be longer than 13 months after the date that the offer opens.

Instruction

Do not insert the closing date at this stage. Once you are ready to lodge the disclosure document and have determined the period of time that the offer is to remain open, insert the closing date in your downloaded document.

About this document

This page outlines the role of the disclosure document and provides important warnings about investing and other information required by regulation.

1. About the disclosure document

1. About the disclosure document This document is an invitation to invest in securities offered by the co-operative. It includes the Terms of Issue for the securities and information that is reasonably necessary to enable a person to make an informed assessment of the financial prospects of the co-operative, before deciding to invest in the securities. You should read the whole document carefully before making a decision to invest. The application for the securities is at the end of this document.

2. Type of disclosure document(Required)

Option A: This is an Offer Information Statement prepared in accordance with s715 of the Corporations Act. An Offer Information Statement is not a prospectus. It has a lower level of disclosure than required for a Prospectus.

Option B: This disclosure document is a Prospectus and has been prepared in accordance with Chapter 6D of the Corporations Act 2001 as applied under co-operatives legislation.

Guidance

If the disclosure document is an Offer Information Statement, this must be stated prominently, along with both a note that there is a lower level of disclosure than in a Prospectus and a warning specified by regulation.

If the document is a Prospectus then this must be stated.

Instruction

Select an option to include the information required by regulation for either an Offer Information Statement or a Prospectus.

If the document is an Offer Information Statement – select Option A.

If the document is a Prospectus – select Option B

3. Warning

Investing in securities carries risk.

You may lose your entire investment, and you should be in a position to bear this risk without undue hardship.

Your investment is unlikely to be liquid. This means you are unlikely to be able to sell your investment quickly or at all, if you need the money or decide that this investment is not right for you.

If you are unsure about investing in these securities, you should consider obtaining independent advice before making a decision to invest.

4. Document lodgement

This [Offer Information Statement/Prospectus] was lodged with the Registrar on […lodgement date…]. The Registrar takes no responsibility for the contents of the disclosure document. Instruction Do not insert the date of lodgement at this stage. You can insert the date after you have downloaded your document and the lodgement date is known. The type of disclosure document will be auto-filled from your earlier answer.

Section 1: Investment Overview

The Investment Overview is a summary of the key elements of the Offer.

1. Type of Co-operative(Required)

The co-operative is a [distributing co-operative/non-distributing co-operative with shares/non-distributing co-operative without shares].

The co-operative is raising funds by offering Co-operative Capital Units (CCUs) to members and to any other person. The CCUs are called [name of CCUs].

Instruction

Identify your co-operative’s type by selecting an option.

The name of the CCUs will be auto-filled from your earlier answer.

2. Purpose of the Offer(Required)

[Insert short summary here]

More detail about the purpose of the Offer can be found in Section 2.

Instruction

Insert a short summary of the purpose of the Offer in the text box. Refer to the purpose set out in the fundraising business case.

3. What are CCUs?

Co-operative Capital Units or CCUs are financial instruments that create an interest in the co-operative’s capital over and above its share capital. CCUs are not required by law to be secured against the co-operative’s assets.

CCU instruments will be classed as debt if they have a fixed maturity date. CCUs that have no maturity date are a form of permanent capital and are classed as equity.

Instruction

The above standardised text will be inserted in the disclosure document. You can alter this text after downloading your document if you wish to provide additional information about the nature of CCUs.

4. CCU structure(Required)

[Name of CCUs] have been structured as [debt instruments/equity instruments].

Guidance

It is important to clarify whether the CCU is structured as a debt instrument or an equity instrument. The Terms of Issue establish their nature, but an initial preliminary statement will assist investors to better understand the instrument being offered.

For ease of reference, CCUs that are structured as debt instruments are referred to in these instructions as ‘debt CCUs’, and CCUs that are structured as permanent capital are referred to as ‘equity CCUs’.

Instruction

Select an Option to describe the nature of the CCU.

Section 1a: Key Terms of Issue

A summary of Key Terms of Issue is set out below. A full statement of the Terms of Issue and information about the rights of investors is in Section 3.

1. Face Value(Required)

Guidance

Debt CCUs can be issued at a discount to Face Value. Investors pay the Issue Price for the CCUs. The difference between the Issue Price and Face Value represents the total interest payable over the term of a debt CCU. No interest is payable during the term. The interest rate on these CCUs is referred to as a ‘zero coupon’.

Equity CCUs are not issued at a discount.

Instructions

For debt CCUs that are to be issued at a discount to Face Value, insert the Issue Price.

For debt CCUs that are not issued at a discount to Face Value, insert the Face Value.

For equity CCUs insert the Face Value.

2. Issue Price(Required)

Guidance

Equity CCUs are not issued at a discount.

Instructions

For debt CCUs that are to be issued at a discount to Face Value, insert the Issue Price.

For debt CCUs that are not issued at a discount to Face Value, insert the Face Value.

For equity CCUs insert the Face Value.

3. Minimum investment parcel(Required)

Instruction

Insert the minimum parcel of CCUs that a single investor can purchase.

4. Maximum investment parcel(Required)

Instruction

Insert the maximum parcel of CCUs that a single investor can purchase. If there is no maximum, insert “no maximum”.

5. Total amount to be raised(Required)

Guidance The minimum is the amount required for the project to be undertaken and the maximum is the amount that would achieve all project outcomes. If the minimum amount of subscription is not reached under the Offer by the closing date, then applications must be returned. The Offer closes either on the closing date or when the maximum sought from the fundraising exercise Is achieved. Instruction Enter $ (minimum) and $(maximum) amounts in the text box.

Minimum(Required)

Maximum(Required)

6. Return on investment(Required)

Instructions

For debt CCUs, insert the interest rate and payment frequency. Indicate whether it is cumulative or non-cumulative. If the interest rate is variable you must state how the interest is calculated.

For debt CCUs issued at a discount to Face Value, state that the CCU is priced at $(Issue Price), being a discount to Face Value. The Face Value is redeemable at the end of the term.

For equity CCUs, state that the dividend on CCUs is determined by the board out of profits, and say whether it is cumulative or non-cumulative and whether the dividend is a preference dividend.

7. Term(Required)

Instructions

For debt CCUs, state the maturity date.

For equity CCUs, insert the following text – “The CCUs have no maturity date.”

8. Redemption(Required)

Instructions

For debt CCUs, insert the following text –

“The CCUs will be redeemed at the end of their term, as set out above. Other conditions or circumstances affecting redemptions are described in Section 3.”

For equity CCUs, insert the following text –

“The CCUs are not redeemable at the option of the investor. Other conditions or circumstances affecting redemption options are described in Section 3.”

Section 2: About the co-operative

Guidance Section 2 of the disclosure document provides information for investors about the co-operative, its business model, operations, and the market in which it competes. This section should also explain why the co-operative wants to raise funds. Much of the information will have been developed during the preparation of the fundraising business case in Part 2 of the Capital Builder. A text box is provided under each heading with Instructions about what to insert in each along with references to relevant ASIC Regulatory Guides. You can download the relevant Regulatory Guides below if you have not already done so.

1. Operating history(Required)

Guidance

Detailed guidance is available by accessing:

Regulatory Guide 228 for how to presenting information in a clear, concise and effective manner, as required by s715A of the Corporations Act; and
Regulatory Guide 254 about the information required in prospectuses and offer information statements.

Instruction

Provide a summary of the co-operative’s operating history.

The summary should outline how long the co-operative has been operating and key developments over its history.

Include information about the sector or industry in which the co-operative operates, such as

the industry maturity, size and growth;
the co-operative’s market share and main competitors; and
any threats and opportunities.

2. Business strategy(Required)

Instruction

Provide a high level description of the co-operative’s business objectives and strategy. It is useful to include a time frame for achieving objectives, particularly if the co-operative is new, or if the CCU offer is to fund an activity that may not generate income in the short term.

3. Purpose of the Offer(Required)

Instruction

Insert the purpose of raising funds, linking it to the co-operative’s business strategy and objectives.

4. Business model summary(Required)

Guidance

The co-operative’s business model is a description of how the co-operative generates income.

Instruction

Provide a description of the co-operative’s business model.

Include a description of the co-operative’s main suppliers and customers and whether they are members or external parties.

Other relevant information could include:

major assets owned or leased by the co-operative, including any intellectual property;
how the project being funded will generate income; and
the value the co-operative brings to members and the industry in which it operates.

5. Organisational structure(Required)

Instruction

Provide a brief description of the co-operative’s organisational structure.

This should include information about the size of the board and the numbers of member directors and independent directors.

The co-operative’s management structure should be briefly described, by outlining the key roles and reporting lines.

Include the number and skills of employees and whether they are full-time or part-time. If there are volunteers how their work contributes to the co-operative’s operations.

7. Financial information(Required)

[Text box]

Financial statements for the co-operative are in Attachment A.

Guidance

Regulatory Guide 69 provides information about performance benchmarks that co-operatives should consider including in their disclosure document when offering debt instruments. Debt CCUs, like debentures, are unlikely to be listed on a stock market. Accordingly, there is no public information available for retail investors to assess and understand the risks associated with an investment such as this in a co-operative. Regulatory Guide 69 recommends the inclusion of financial performance benchmarks in a disclosure document for debt instruments.

Consider what financial performance benchmarks, if any, might assist investors considering debt CCUs.

Benchmarks for equity CCUs may not be the same as for debt CCUs and will depend on their structure and the co-operative’s overall capital position.

If you decide to include any benchmarks in the disclosure document, then you should include reporting against these benchmarks to CCU holders.

Instruction

Provide information in the text box about the co-operative’s past financial performance. For debt CCUs identify any benchmarks that the co-operative undertakes to meet over the term of the CCU.

You will attach financial statements later, at Attachment A, after you download your final document.

Separate guidance is provided at Attachment A about what financial statements should be included.

6. Capital structure(Required)

Guidance

Capital structure is how the co-operative finances its business. This could be through such things as share capital, subscriptions, debt finance, retained earnings and grant funding.

Instruction

Provide the following information:

the number of shares on issue and whether there are any unpaid amounts on issued shares;
the annual subscriptions and levies payable by members;
a list of the securities on issue, such as debentures and CCUs; and
the amount of retained earnings.

If the co-operative has debt funding from financial institutions or director loans, you should provide information such as:

the amount outstanding;
the interest rate;
whether the co-operative is able to meet the repayments from earnings; and
the debt term or any renewal requirements.

If the co-operative relies on grant or other government funding, you should include:

the amount and term of the funding; and
any key terms or conditions of the funding, such as repayment terms or the achievement of milestones.

Provide a summary of any changes to the capital structure that will occur as a result of the CCU funding. For example, if the CCUs are structured as permanent capital, then this will result in an increase in equity on the co-operative’s balance sheet. If the CCUs are structured as debt, what impact will this have on the balance sheet.

Finally, the nature of capital in a co-operative is not well understood in finance markets. You should consider including a brief explanation of co-operative capital, particularly member share capital and CCUs.

Section 3: Terms of Issue for CCUs

This Section of the disclosure statement contains all the information about the Terms of Issue for the CCUs. The key Terms of Issue have already been inserted in the Investment Overview. You do not need to provide them again in this Section, they will be auto-filled in your final document. You will need to include other information about the Terms of Issue, by following the instructions below and referring to the Term Sheet developed during the fundraising business case. The co-operative invites subscriptions for [name of CCUs] under the following Terms of Issue. The CCUs have been structured as [debt/equity] Instruction The name of the CCUs and their structure will be auto-filled from your earlier answers.

1. Limit on investment by non-members(Required)

Guidance

The co-operative can limit the amount of investment from external investors. A limit on external investors provides comfort for members that the interests of non-members will not overwhelm their interests.

If there is a limit, it must be stated in the Terms of Issue. The limit may be expressed as a percentage of the total offer, a dollar limit or a limit on the number of instruments that may be held by non-members.

If there is no limit on investment by external investors then this should be stated.

Instructions

Specify any limit on the total holdings of CCUs under this Offer for non-members.

2. Payment frequency(Required)

Instructions

For debt CCUs, specify the payment frequency for interest payments – for example, quarterly or half-yearly.

For debt CCUs that are issued at a discount to Face Value, state that the CCU is a zero coupon instrument and that the Face Value will be paid at the end of the CCU term.

For equity CCUs, state that the dividend on CCUs is determined by the board out of profits, and specify whether it is preferential, cumulative or non-cumulative.

3. Redemption(Required)

Instructions

If there are any options for early redemption of debt CCUs, state whether the option is with the co-operative or the investor, and the conditions that affect the exercise of the option.

If there is an option for the co-operative to redeem equity CCUs, state how this option is to be exercised. If there is no option to redeem the CCUs, state that they are not redeemable.

4. Transfer rights(Required)

Instruction

Set out the rules governing the transfer of CCUs, and include fees for transfers

5. Voting rights(Required)

Guidance

Co-operatives must have rules in their constitution specifying the voting rights of CCU holders.

Instruction

Specify the voting rights for CCU holders by referring and inserting the relevant rule(s) from the co-operative’s constitution.

6. Notice of and attendance at general meetings(Required)

Guidance

CCU holders, who are members, have the right to receive notices and attend all general meetings in their capacity as members. The Terms of Issue can grant a right to CCU holders who are non-members to receive notices and to attend general meetings.

Instruction

Specify whether non-member CCU holders have a right to receive notices of and attend general meetings. If there are no rights to receive notices or attend then this should also be stated.

7. Reporting(Required)

Guidance

CCU holders, who are members, receive annual financial statements as members of the co-operative. CCU holders do not have this entitlement. Reporting obligations for CCU holders must be included in the Terms of Issue.

Consider what financial and non-financial reporting should be provided to all CCU-holders .

Instruction

Outline what financial and other reports will be provided to all CCU holders. Note that reporting is also covered in Section 4 of the disclosure document and you can refer to the further detail in Section 4.

8. Covenants(Required)

Guidance

Debt CCUs may include covenants relating to financial or non-financial performance in their Terms of Issue. For example, the Terms of Issue may specify a gearing ratio or environmental impact milestones. A breach of the covenant may result in an obligation to address the breach and report on the matter to CCU holders.

Equity CCUs are unlikely to include covenants as they are permanent capital carrying similar financial risks to shares.

Instruction

If there are covenants related to performance, they are to be specified here. The consequences of breaching a covenant must also be specified. If there are no covenants, then state that there are no covenants.

9. Default events(Required)

Guidance

Debt CCUs may include default events in their Terms of Issue, such as non-payment of interest. A default event, if it occurs, may give rise to consequences such as a higher interest rate or accelerated repayment of the Face Value.

Equity CCUs will not have default events as they are permanent capital carrying similar financial risks to shares.

Instruction

Specify if there are any default events and their consequences. If there are no default events, then state that there are no default events.

10. Priority in a winding up(Required)

Instructions

For debt CCUs, specify the repayment priority of both the Face Value and any unpaid interest on the CCUs, in the event of the co-operative winding up.

For equity CCUs, specify the repayment priority of both the Face Value and any unpaid dividend on the CCUs, in the event of the co-operative winding up.

11. Participation in surplus assets(Required)

Instructions

For debt CCUs, state that the CCUs do not have any right to participate in surplus assets in a winding up.

For equity CCUs, specify what rights the CCU holders have to share in any surplus assets if the co-operative is wound up. If there are no participation rights, then say this.

12. Approval of Terms of issue

The Terms of Issue for [name of CCUs] were approved by the Registrar on […insert date…] and by special resolution of the co-operative on […insert date…]. Instructions You can insert the dates of the approval of the Terms of Issue by the Registrar and the members after you have downloaded your document. The name of the CCUs will be auto-filled in your final document.

13. Offer closing date

The Offer closes on [Insert date once decided]. The Offer will be closed either on the closing date above or earlier, if the co-operative receives subscriptions equal to the maximum amount to be raised. Once the maximum amount has been subscribed, any further applications for the CCUs will be returned along with monies accompanying the applications. Instruction Do not insert the closing date at this stage. Insert the closing date for the Offer, once the date has been decided and after you have downloaded your document.

14. How to apply

To participate in this Offer, you must submit to the co-operative a completed Application Form with the application money, before the closing date. The application form is at the end of this [offer information statement/prospectus]. Instruction The type of disclosure document will be auto-filled in your final document.

15. What happens to subscription money?(Required)

All monies received will be held by the co-operative in trust until the Offer closes and any CCUs are issued in accordance with [s253 Co-operatives Act 2009 WA/s340 Co-operatives National Law].

If the total subscriptions do not reach the minimum amount to be raised under this Offer, all application monies will be returned.

Instruction

Select the option for the applicable legislation.

16. Tax

If you apply for and are issued CCUs, you may be liable for income tax in relation to interest or other distributions from the CCUs. If you are considering an investment, you should seek your own advice about any tax consequences.

17. Cooling off period

People may change their minds after applying for CCUs. If you want to withdraw your application for any reason, you must advise the co-operative Secretary within five business days of making the application. Contact details for the Secretary can be found on the Application Form. After your withdrawal has been processed, the co-operative will refund the application money to your nominated account as soon as possible. Guidance You can choose to provide investors with a cooling off period. You are not required to do so. Other entities offering securities, such as companies, are required to give investors a cooling off period of five days, during which they can withdraw their application without having to provide reasons. Instruction If you do not want to allow a cooling off period for investors in these terms then you need to delete or amend this paragraph after you have downloaded your document.

Section 4: Governance and reporting

1. Board of Directors

[Name of co-operative] is governed by a board of directors elected by the members.

Instruction
The name of the co-operative will be auto-filled from your earlier answer.

2. Frequency of Board Meetings(Required)

The board meets [……………………………].

Instruction

Insert the frequency of board meetings in the text space.

3. Board Committees(Required)

Instruction

Provide the names of the board committees.

If there are no committees, provide information about how the board manages particular issues.

An example statement might be:

“There are no board committees. The full board deals with all issues relating to the management of the co-operative’s business.”

4. Directors(Required)

Guidance

Include the following information about each director.

Full name
Role: Is the person the Chair, the managing director, are they on a board committee? Is the person a member or an independent director?
Skills and experience: How long has the person been a director of the co-operative? What other skills or experience does the person have in relation to managing a co-operative or in the industry?
Any legal or disciplinary actions against the person must be disclosed. Has the person been disqualified from managing a company or co-operative? Has the person been convicted of any criminal offence? Has the person been involved with an enterprise that has become insolvent?

Instruction
Insert information about each director.

5. Management(Required)

Guidance

Senior management personnel of the co-operative should be identified in a similar way that directors are identified. Smaller or new co-operatives may only have one management employee.

The name(s) and role(s) of each senior management person should be provided, along with an outline of their experience and qualifications.

Instruction

Insert information about key management personnel in the text box.

6. Board Policies(Required)

Guidance

This part of the document is an opportunity to describe board policies about the management of the co-operative. For example, the board may have adopted the Co-operative and Mutual Enterprise Governance Principles or other policies that promote inclusiveness and diversity in employment.

Policies do not need to be either summarized or described in detail, but can be linked or referenced.

Instruction

Insert information about board policies and where they can be accessed.

7. Reporting to Investors(Required)

Guidance

Co-operatives that have securities on issue to the public must prepare an annual report, which includes a director’s report and audited financial statements. The annual report must be lodged on the public register maintained by the Registrar.

Co-operatives can determine what other reporting would be relevant to investors, in particular if the co-operative has identified financial benchmarks these should be included in reports to investors. If the instruments are to fund a project to deliver social or environmental outcomes, or the United Nations Sustainable Development Goals, then this could be included in reports to investors.

Instruction

Insert a description of the reporting that will be provided to all CCU holders. Check that the outline is consistent with the reporting described in Section 3 – Terms of Issue.

8. Director Interests in the Offer(Required)

Guidance

Directors and managers may have an interest in the Offer, if the project being funded has the potential to deliver a benefit to them. For example, if the purpose is to acquire property from a director or manager, then this is a direct interest. If a person or entity that will benefit from the fundraising has a connection with a director or manager, such as a family connection or through other shareholdings, then this would be an indirect interest.

Interests of this nature must be disclosed, along with the measures put in place by the co-operative to remove or manage any conflict of interest. For example, if the fundraising was to be used to buy property from a director, then a due diligence investigation to determine whether the acquisition and valuation are appropriate should have been undertaken and must be disclosed.

Please refer to Section G of Regulatory Guide 228 for further information about what interests should be disclosed.

If there are no direct or indirect interests, then it is sufficient to state:

“The directors do not have any direct or indirect interest in the Offer, or issue of the securities, other than whatever interest is created as a result of any director or manager applying to subscribe for the securities on the same terms as other investors.”

Instruction

Insert a statement disclosing any interests in the Offer by directors or managers.

9. Commissions(Required)

Guidance

If any directors or managers have received any commission or payments for providing services or an advisory role in the development or preparation of the fundraising, this should be disclosed.

For example, a director or manager may have expertise in the preparation or implementation of a marketing plan for the Offer and be paid a fee for these services outside their normal remuneration arrangements. Unless this has already been disclosed in relation to director and manager interests, it should be disclosed here.

If there are no commissions or fees, it is sufficient to state:

“No compensation, consideration or fee relating to the success of the fundraising process has been or will be paid to any director or manager of the co-operative.”

Instruction

Insert information regarding any commissions or fees relating to the fundraising paid to directors or managers of the co-operative.

10. Advisory Services and Consents(Required)

Guidance

During the preparation of the business case and this disclosure statement, the co-operative may have received external professional services.

For example, accountants and financial advisers may have prepared financial statements and related information. This should be disclosed.

Where information in the disclosure statement includes an opinion or advice about any aspect of the Offer, the co-operative must have obtained the written consent from that professional adviser for the advice or opinion to be published, as part of the disclosure statement. In these instances, the name of the person who provided the opinion or advice should be disclosed, along with the fact that their written consent to include their opinion or advice has been obtained and not withdrawn.

Instruction

Provide information about professional advisory services and list the names of those who have provided opinions or advices and that they have consented to their inclusion.

If no external assistance was obtained, you should insert information about how the fundraising proposal was developed. In this case, it is sufficient to say that the proposal to offer CCUs was developed by the board and management.

Section 5: Risks and risk management

1. About risks

This section identifies the main risks that may affect the co-operative’s business. Investors should read this section carefully before deciding to apply for [ name of CCUs]. There are other risks, such as general economic conditions, environmental and regulatory risks, which may affect your investment. You should obtain your own advice about the likelihood of these risks occurring and affecting your investment. Instruction The name of the instruments will be auto-filled in your final document.

2. Risks to the Co-operative’s Business(Required)

Guidance

The disclosure document already contains a general risk warning to investors. However, it is important to identify the main risks facing the co-operative and how these risks are relevant to the investor.

You do not need to include general risks applying to all businesses, such as risks arising from general economic conditions.

The main risks will have been identified in the fundraising business case. They may be risks associated with the co-operative’s business operations, internal risks or other funding risks.

Common risks of relevance to investors are:

Market or competition risks – for example, the co-operative may be operating in or entering a market dominated by large successful businesses.
Internal risks – for example, the co-operative may lose a key manager or be unable to employ a suitable manager.
Loss of suppliers or customers – for example, if the co-operative’s suppliers are its members, the risk is that members may no longer support the co-operative and instead supply their product to another buyer.
Project risks – for example, the cost of the project may exceed the amount being raised, thereby reducing capacity to proceed.

Instruction

Describe the key risks facing the co-operative and explain how these risks may impact CCU holders.

You can describe the risks in a summary form here and attach a risk analysis showing the likelihood of the risk arising and the risk management strategies being implemented at Attachment B at the end of the disclosure statement.

3. Risk Management(Required)

Guidance

It is not imperative to provide detailed risk management strategies. However, for significant risks, it is useful to outline the co-operative’s risk management measures.

These measures may include strategies to offset the risk, such as

insurance to cover the possibility of an event;
reducing the likelihood of the risk or its consequence through due diligence processes and planning; and
monitoring risks and having measures at hand to address risks if they eventuate.

Instruction

Briefly describe the risk management strategies that the co-operative has in place to mitigate the identified risks.

If you have decided to attach a risk analysis report at Attachment B that includes risk management strategies, then it is sufficient to state that risk management strategies are set out in Attachment B.

Public Offers – CCUs

CCUs