Information for Investors

The Watershed Wealth Coop is a social purpose enterprise seeking investors.  You will find information below on:

The Stated Purpose of the Coop
Our Revenue Streams
The Market
The Business Model
How Profits will be Distributed

Investors can purchase Coop investment shares online, or contact us for further discussion on negotiated investment arrangements.

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The Stated Purpose of the Coop:

Per the Coop Rules, there are conceptual and operational purposes of the Coop.  The conceptual purposes are to provide a business structure that support the undertakings of a social purpose enterprise, whose goals include:
a.      restoration of lost and degraded habitat
b.      local community economic development
c.      skill development and training
d.      development of non-tax based funding sources for stewardship initiatives
e.      increase in consumer education about habitat degradation
f.        affect a shift in impacts from current public consumer patterns, and generate new public consumer patterns that restore rather than degrade the environment
The operational purposes of the Coop are to:
g.      coordinate and support activities of Watershed Wealth Delivery Agents
h.      broker various tangible and intangible products to markets
i.       provide services and dividends to Coop Members

Our Revenue Streams:

There are both product and service-related revenue streams for the Coop:
PRODUCTS
* plant materials as “nursery stock”
* “direct sales” of raw botanical product to markets
* sale of seeds
* “value added” product sale
 
  SERVICES
* invasive plant removal
* organizational support
* operational support
* training and information
* data collection & reporting
* online services / sales
* carbon credit verification & trade
* related consulting

The Market:

There are various local, national and global markets for materials collected from Watershed Wealth sites.  Fresh and dried raw materials will be brokered to ornamental, neutraceutical, medicinal and edible markets.  There are also multiple value added products these materials are used for.  Locally appropriate native plant nursery stock and seed is often difficult to find for habitat restoration projects. 

WWC has conducted feasibility studies on the service provision of Delivery Agents and found the franchises would be independently viable.  Feasibilities on additional revenue streams the Coop would undertake independent of, but in support of, its Delivery Agent are currently in consideration.

Some quick stats on the global and Canadian markets:
•    The global herb and spice industry is estimated at more than US$60 billion. The total value of herb and spice production in North America is estimated at over US$500 million.
•     From 1996 to 2000, Canadian exports of herbs and spices increased from $44 million to $67 million, an increase of 52%. Canadian imports during this time increased from $269 million to $437 million, an increase of $168 million.
•     Currently, 70% of Canadian manufacturers are importing natural health products and their ingredients, many of which could be provided in Canada. (SAC Inc., 2002)

The Business Model:

Watershed Wealth is actually an integrated system of businesses and non-profits.  Delivery Agents are stand alone businesses that act as independent franchises of the Coop. The Coop supports their common needs and provides additional common services better handled at a larger scale, as well as special initiatives with related non-profit sector partners. 

The Watershed Wealth Coop business operations model is one of subcontracting, franchises and minimal overhead or staff, with online coordination and support to minimize costs and enable quick scaling of activities to real-time operational needs. 

The WWC model has been influenced by business models of custom development contracting from the construction industry and old-time farmers’ coops.  Although it will broker physical products, the Coop is really a service-based business.  As a social enterprise, the point of undertaking the business is to accomplish physical restoration of habitat, and generation of jobs and profit to assist community and social purpose groups.

How Profits will be Distributed:

As with any new enterprise, we do not expect profits in the first few years at either the overarching Coop or Delivery Agent levels.

Once accrued, the Coop will spend surplus funds according to its Rules, which state that funds will be spent:
1. first, to ensure contingency reserves are full;
2. next, to pay interest dividends due on investment shares;
3. next, to retire all or a portion of any liabilities previously incurred by the Association, as the directors determine is appropriate;
4. next, to pay member patronage returns or dividends as recommended by the directors; and
5. last, to a community foundation held in trust for the Coop for the purposes of grant making associated with the conceptual or operational purposes.
 
Delivery Agents are separate entities in control of the use of their own profits, and make investment payback arrangements directly with investors.