Workers Development is raising $500,000 for Workers Diner by means of a "direct public offering" or DPO. These funds will be employed to build the restaurant, purchase equipment, train new worker-owners, and obtain the appropriate city and state permits. Until the minimum offering amount of $450,000 is achieved, all funds will remain in an "impound" account at Lower East Side People's Federal Credit Union.
Workers Diner is legally qualified to accept stock investments from local supporters in New York and Connecticut. Furthermore, due to unique securities laws meant to encourage small business, we will also gain permission to advertise its stock sales by means of traditional media, such as magazines, newspapers, radio and the internet.
Importantly, Workers Diner will only sell cooperative "preferred shares": this type of share guarantees that profit and voting control remain in the hands of worker-owners. At the same time, investors can expect a fair and fixed return on their investment. In the future, worker-owners will also be required to invest in the business.
Finally, we will enable investors to purchase shares online through our website.
In accord with the above, Workers Development intends to pioneer an innovative strategy for the grassroots financing of worker-owned businesses. To find out more, please email us or call (212) 678-2397.