1. To Serve and Develop Organic Ag
Since 1988

2. 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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3. Continuous Growth
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4. 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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5. 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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6. 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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7. 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

8. 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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9. 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.9

10. 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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11. 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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12. 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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