November 24, 2020

MaxYield Announces New Equity Service Program

The following letter was recently sent to MaxYield Cooperative equity holders, announcing a new equity servicing program available to MaxYield members. 

December 11, 2014

Dear MaxYield Equity Holders,

We are pleased to inform you of a new feature we are making available as part of our equity servicing efforts at MaxYield Cooperative (MYC). For those choosing to participate, we are offering to redeem some allocated equity at a discount. This will be in addition to retiring some of our oldest, outstanding equity at full face value as we have in the past.

This initiative will allow eligible equity holders the option to have some portion of their equities redeemed earlier than historically has been possible at MYC. We have established two groupings of equities for which this new discounting initiative will be offered at this time.

The first priority grouping will be all equities from the years 1989-1998 and the balance of the local Britt equities and are redeemable at 75% of face value. The second grouping will be the equities from the years 1999-2004 and are redeemable at 60% of face value.

As these equities were qualified when paid to you, they should have been included as income and subjected to taxation in the year they were issued. Redeeming now at a discount will allow you to claim an ordinary business loss on the difference between the face value and actual cash received against your current year ordinary income. Please consult with your tax advisor to evaluate the program based on your own particular circumstances.

The use of this discounting initiative will assist in the acceleration of the rate MYC is able to revolve qualified allocated equity to past and current members. We have a goal of attaining a 10-12 year revolvement cycle within the next 5 years. Doing such will enhance our competitive positioning in the market place and strengthen us financially.

We have established a first year cash cap of $300,000 to introduce this new discounting initiative. If we experience more interest than the $300,000 first year cash cap, we will give preference to Group One (1989-1998 equities and local Britt equities) before Group Two (1999-2004 equities). We anticipate having more equity groups to add to the offering as we move forward. In the event demand is great, we may need to prorate participation to keep the program fair to all.

For your convenience, we are sending a summary of your Group One, and Group Two balance. You will need to make a voluntary decision to participate, then fill out and return the enclosed election form to a MYC office before January 31, 2015. If you choose to participate, you will need to tender all eligible equities from a grouping, but not necessarily both groupings.

We will have a series of informational meetings to explain the program and answer your questions.
January 6, 2015:                      9 a.m. Regional Events Center, Spencer
2 p.m. Wild Rose Casino, Emmetsburg

January 7, 2015:                       9 a.m. West Bend Country Club
2 p.m. Kossuth Co. Ag Museum, Algona

January 8, 2015:                       9 a.m. Duncan Community Hall
2 p.m. Belmond City Hall Community Room

We are excited about this discounting initiative. Equity servicing is important and we feel this new flexibility will be useful for many of our equity holders.

For more information, contact your nearest MaxYield location, or call 515-887-7211 or 1-800-383-0003.

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