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How & Why to Invest in a CEDC

Posted: October 11, 2017
Category: Blog

By now, you may (or may not!) know that Naveco Power is working towards becoming a Community Economic Development Corporation- or a community investment fund- in New Brunswick. Investing in a CEDC and Naveco Power will create opportunities for NB’ers, benefits for the investor, and a clean economy for all!

 

To be an eligible investor there are a few requirements by FCNB that must be met;. http://www.fcnb.ca/cedc.html





It is important to note that the minimum investment per individual is $1000 & the maximum investment is $250,000. If the investor is a trust or a corporation, the minimum investment is $50,000. An investor must hold onto their shares for 4 years before being able to sell.

 

Steps to become an investor (the how):



  1. Deliver an express of interest for to the CEDC (this can be downloaded right from our website!). Don’t worry, an expression of interest is not a commitment to investing. The CEDC will then give you an offering document- this will hold financial info about the proposed projects and will outline the risks of investing.

  2. Deliver an acknowledgement stating you agree to the CEDC’s risk.

  3. Agree to buy shares in the CEDC by delivering a signed subscription agreement (you have 2 days to change your mind).


 

Investor benefits (the why):



  1. May receive returns in the form of dividends (biannually) or cash distributions upon the sale of shares.

  2. 50% personal income tax credit.

  3. 15% income tax credit for trust and corporate entities.

  4. Contribution to the growth of your community, the increased use of renewable energy in New Brunswick, and the addition of “green” to your wallet and investment portfolio!