Five Ways Farm project
Guiding Values: Nature, Health, Friendship, Knowledge, Sustainability
Mission: Living a higher quality life
COMPANY SHARES
company shares
useful information for calculating the price of the shares offered for subscription
property and free loan
From the page dedicated to the Community of Friends, I remind you, and as you will see better in the page Value, that the owner of the building and the apartments in it will be the limited liability agricultural company.
The partners are the owners of the company’s shares. They will receive from the company the right to enjoy an apartment on a free loan, alone or with other persons, according to the value of the social share subscribed.
The gratuitous loan will last for the whole duration of the possession of the social share.
Therefore, at the transfer of the share, the transferring partner will have to leave the apartment free, and the new purchasing partner will take over the free loan.
In summary, this project provides that:
a rural building is transformed from use as a machine and tool shelter to residential use to obtain, as you can see for yourself, a maximum of 27 apartments.
the capital stock CS is divided into as many unitary social shares (QSU) as there are blocks (see next paragraph) reserved for the members’ apartments;
each member has the right to enjoy an apartment on free loan, alone or with other people, depending on the subscribed social share price.
I have chosen to parameterize the social share’s subscription price with the “personal area at the disposal.” By this, I mean that the social share’s subscription price will be a function of the independence that each person will choose for himself in living.
I could have chosen to set social share subscription prices equal, so the unit social share would have been equal to the social capital divided by the total number (N) of social shares QSU = (CS / N), with N constant; and the share subscribed by the jth participant would have been equal to QS j = (CS / N) x nj = QSU x nj, where nj indicates the number of unit shares subscribed by the jth participant. But I have decided otherwise because I believe in a certain sense fairer the proposed solution.
Having made these helpful reminders, let us now get into the subject. How are the prices of the social shares to be subscribed calculated?
BLOCKS AND ZONES
With valid approximation, we can think of dividing the surface of the rural building from which to obtain the partners’ apartments into 62 equal blocks, with an area equal to B = 25 sq.m./block, of which 48 blocks of standard height (2.75 m), 24 on the ground floor and 24 on the second floor, and 14 blocks of lower than standard height on the second floor – under the truss chain the height is about 1.45 m, under the ridge of the attic the height is about 3.30 m.
Here I introduce a correction.
Since on the second floor the height along the exterior perimeter walls is less than normal, each 25 sq. m. block will be counted as 2/3 of a block of normal height.
Under this convention, the fourteen blocks on the second floor will be counted as 14 x 2/3 = 28/3 = 9 + 1/3 blocks, with the conventional loss of 4 + 2/3 blocks.
The rural building to be transformed can be divided into two parts:
a part for apartments, equal to 21 blocks on the ground floor, 21 blocks on the second floor, and 9 + 1/3 blocks on the second floor,
a part for other uses (common areas on the ground and first floors, basically stairwells, corridors, technical rooms, equal to 3 blocks on the ground floor, three blocks on the second floor, and 4 + 2/3 blocks on the second floor due to the convention adopted.
The part reserved for apartments can be divided into four zones:
zone A 150 sqm on the ground floor, 150 sqm on the second floor, 150 sqm on the second floor,
zone B 100 sqm on the ground floor, 100 sqm on the second floor, 100 sqm on the second floor,
zone C 150 square meters on the ground floor, 150 square meters on the second floor, 100 square meters on the second floor,
zone D 125 sqm on the ground floor, 125 sqm on the second floor.
To change from square meters to the number of blocks divided by 25 square meters, take care to multiply by 2/3 the second-floor blocks.
The part reserved for apartments can be divided into two parts according to the criterion of the type of user-hosted:
apartments for members
apartments for non-members (customers of the lodgings, woofers, employees).
variables for the calculation of the value of the company shares
Now, for each project example, 4 variables must be defined:
The amount of capital stock to be raised;
the number of apartments to be built
the number of blocks for each apartment;
the number of people for each apartment.
From these original variables the following derived variables can be calculated:
the total number of blocks to be reserved for members’ apartments; this will be the number used to divide the social capital into social shares;
the subscription price of the social share per block;
the subscription price of the share per apartment;
the subscription price of the share per person for each apartment;
the number of people adhering to the project and thus to the community.
Project Classification Criteria
Finally, I believe that the project can be usefully classified according to two criteria:
(a) the amount of capital stock to be raised:
low capitalization project: from 5 million to 7 million;
medium capitalization project: from 7 million to 9 million;
high-capitalization project: from 9 million and above;
b) the number of participating members:
low participation project: from 20 to 50 participants;
medium participation project: from 51 to 100 participants;
high participation project: 101 and more.
The examples given in the CAPITAL RAISING page are only some of the many examples that could be given.
During phases 1 and 2, preparatory to participation in the community / farm society / association, we will make many others that will gradually respond to the real situation that will be formed.
In the examples given on the page CAPITAL RAISING:
I do not consider the possibility of reserving apartments for non-members; you can, if convenient, create other structures for agritourism hospitality;
I do not vary the amount of company capital to be collected (E), which, however, in the following, we will be able to vary, keeping within certain ranges,
I do not vary the total number of blocks reserved for members (TBNS), and consequently
I do not vary the share subscription price per block (CS / TBNS).
World Wide Opportunities on Organic Farms, or Willing Wrokers on Organic Farms, is a hospitality service operated by a loose network of national organizations that facilitate homestays on organic farms.