For our community to build a full-fibre broadband network to deliver world-class gigabit broadband to everybody we need to raise a total of about £1 million. The good news is that 90% of this will come from the government through the Gigabit Voucher scheme but the funding from each voucher is not released until after the property that applied for the voucher is connected to the network and is receiving a broadband service. To fund the cost of starting to build the network and make the first few connections we need to raise 10% of the total cost from within our community by the sale of Community Shares.
Reasons to buy Community Shares
The advantages of buying Community Shares are:
♦ There is an annual return of ........5% paid on the value of
your Community Shares
♦ All of the money raised by the sale of Community Shares
will be used to fund the building of our network. On the application form enter the name of the network you wish to fund by entering either 'Backford' or 'Mollington'
♦ Members of the community who buy £1500 worth of Community
Shares will not have to pay the £150 connection fee
when their home or business is connected to our network
♦ £100 worth of Community Shares is the minimum that you can buy to support our broadband project
♦ When you buy Community Shares you are making a significant contribution to improving the broadband for everybody in our community
What are Community Shares?
Community Shares are a way in which members of our community
can loan some money to our broadband project. Shares are
bought from the B4RN community. Each share ..........
costs £1 and the money raised from the purchase of Community Shares
will all be used to fund our community broadband project.
The value of Community Shares does not change, and they
can only be sold (after at least 3 years) back to the
B4RN community. To encourage members of the community to
buy Community Shares and as a reward for demonstrating
a commitment to our project the Community Shares earn an
annual return of 5%.
The B4RN community which we are a part of is registered
with and is regulated by the Financial Conduct Authority
(FCA) as a ‘Community Benefit Society’. This means that
the B4RN community does not make a profit. Any surplus
funds have to be returned to the community and used to
benefit the whole community. View the Community Shares prospectus The Community Shares application form
Making a pledge
For those people who do not want to commit to the purchase of Community Shares until you are sure that the network is going to be built you can now pledge to buy Community Shares. To make a pledge, simply go through the process of buying Community Shares and at the top of the form print the word “PLEDGE”. The purchase of Community Shares will then be delayed until the building of the network begins.
Community Shares have no potential for capital gains and will only be redeemed
at face value. For the first three years the investment cannot be withdrawn.
Annual interest will be paid at a rate which will be determined by the Board
after considering B4RN’s financial position and FCA rules. At present the target
rate is 5% which is paid in the form of additional shares. ........ After three years investors may apply to withdraw their investment.
B4RN puts aside an amount each year to fund these withdrawals, however the amount available will
be subject to B4RN’s trading position and will be at the discretion of the Directors, so there is
no guarantee that there will be sufficient funds put aside in a particular year to meet all demands
for withdrawal. First priority will be given to those investors wishing to withdraw the interest
payments they have received in the year. These will always be paid if requested. Any remaining
requests will be handled on a first come, first served basis until the withdrawals fund is exhausted.
Note: There are risks associated with buying Community Shares so you may feel it appropriate to take
professional advice before you buy.