The Hancock-Henderson Quill, Inc.
by Dessa Rodeffer, Quill Publisher/Owner
420 Members $10.5 Million (5.5m bu.) Board votes to delay 1st equity deadline
Iowa-Illinois Co-Chairmen of BRRC (Big River Resources Cooperative) are thrilled with the first segment of an equity drive for a farm cooperative ethanol plant they plan to build in West Burlington, Iowa.
The building of BRRC was dependent on a minimum deposit goal of $11m being raised by a July 1st deadline with 90% of that goal already reached of $10.5 million.
Raymond E. Defenbaugh, Biggsville, and Andy Brader, Mediapolis, Iowa Co-Chair and General Co-Managers, sent letters, dated April 30, 2002, to all BRRC Investors and Prospectus Recipients of the results of the initial equity drive.
The drive for membership to raise a minimum offering of $11m and maximum offering of $33,687,500, must come from producers of agricultural products and associations of producers of agricultural products.
85% or more must be from a person engaged in "farming," including a tenant of land used in the production of agricultural crops, and landlords of land subject to lease and used in "farming" and who receive as rent part of the agricultural crops.
The minimum investment for agricultural land owners is $10,500 (two shares and a non-refundable $500 membership fee). The drive kicked off February 21st with a series of meetings throughout the area with an April 15th deadline before the cost of the shares were to increase 10%.
According to Defenbaugh, the response has been more than expected.
"We would have been pleased with $4 to $6m in our initial offering but with $10.5 million it is definitely looking like a go ahead for the plant."
In the letter to investors and prospective members BRRC said "the board extends sincere appreciation for your equity meeting attendance and investment interest since our Feb. 21 kickoff.
"We have over 420 members whose corn and corresponding investor commitments are 90% ($10m, 5m bushels).
"This includes investment by nine (9) separate grain merchandising companies representing a much greater number of individual and dispersed facilities to enhance grain origination opportunities.
"To date, joint venture investors have pledged $2.5m.
"After much board discussion, with advice from our equity manager and legal counsel, the board voted to delay the 10% share increase until July 1. Thereafter the 10% increase will remain in effect until the equity drive is complete."
"Merits for this decision are based on anticipated final resolution of the new farm bill and the energy bill. Additionally, an Iowa bill giving investment tax credits passed through to the coop investor, awaits the signature of Governor Vilsak.
"These important changes, occurring since April 16, 2002, provide powerful incentives to increase initial investment in our ethanol plant.
Potential changes of these bills signify a stimulus to motivate existing investors to increase their ownership share in Big River Resources, without per share increase until July 1, 2002.
The board thanked the coop membership for their encouragement, patience and understanding, and cooperation "in this important and timely opportunity in allowing us time to enhance the "best efforts" success of our capital funding drive."
Other members of the board are Richard Slegle, Secretary, Oakville, Iowa, Les Allen, Treasurer, Monmouth, Terry Davis, Roseville, Jim Gunter and Gary Sandberg, Kirkwood, Gene Youngquist, Cameron, Matt Dutton, Alexis, Steven Giertz, Biggsville, Pat Edmonds, Mediapolis, IA, Larry Unkrich, Fairfield, IA, Kirk Siegle, Oakville, IA, Steven Mallams, Mt. Union, IA.
Those interested in membership call Bill Riechers, Equity Marketing Manager at BRRC office in Monmouth - phone 309-734-1789. You can also ask questions of Andy Brader (319) 394-3825, cell: 319-759-4645 or call Ray Defenbaugh 309-768-2295, cell 309-255-8151.