Material Change Statement

A material change statement informs prospective investors of changes in your co-op’s financial position that may influence their decision to invest. It must be filed within 30 days of any change.

Material changes could include:

• The signing of a long-term sales contract
• Significant, unexpected costs to replace equipment
• The sale of a large portion of assets
• The purchase of new assets
• A major shifts in sales
• A substantial rise in production costs
• Variations in wholesale cost

Exemptions

Transactions are not deemed as “material changes” if they affect:

• Gross revenue or sales by less than $20,000
• Net income or loss by less than $10,000