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An Investment with an Immediate Payback

May 7, 2017

MoberlyNaturalCrush awarded $1.5 million in Producer Tax Credits
 

We are pleased to announce that MoberlyNaturalCrush has been approved an allocation of $1.5 million of New Generation Cooperative Tax Credits by the Missouri Agricultural and Small Business Development Authority (MASBDA). The allocation is contingent on the successful completion of its equity drive and formation of the company.

 

This means that farmer-producer investor members will receive an immediate tax credit of between 37.5%-to-50% of their investment in MoberlyNaturalCrush. The percentage of the tax credit is based on the amount of equity raised through eligible farmer-producers. MoberlyNaturalCrush is targeting an equity raise of $4.0 million. The $1.5 million tax credit will be spread evenly among eligible investors based on their investment. For individual investors, the maximum tax credit is $15,000.

 

Based on its financial projections, MoberlyNaturalCrush expects to achieve revenue of $16.6 million and profitability of $1.4 million by year three of operations. Assuming this success,

 

management believes that the valuation of the business will significantly exceed the initial offering.

 

Note, a key contingency to the MASBDA allocation is that the company’s governance be majority controlled by the farmer-producer investor members. When the company forms its Board of Directors, those directors will set the company’s strategic course relative to the distribution and/or further investment of company proceeds.

 

“The goal of this tax credit program is to spur investment in rural Missouri for the benefit of agricultural producers and the economic impact on local economies,” said Patrick Conners, who is spearheading the equity drive along with Jim Beckley, of Clarence. “The creation of a new soybean crush plant is a great marketplace that will benefit ALL northern Missouri farmers, not just those dedicated to non-GMO crops.

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