Sourcery explains that by allowing its growers, manufacturers, traders, and brands to become equity owners in the company as part of its stock option programme it will create a supply-chain-owned corporation dedicated to transforming trade for the better.
The new programme is structured to ensure equal participation and influence among partners. Sourcery's stock distribution is based on the aggregate value of equal member contributions over a five-year vesting period, with no single partner able to earn more stock than another. This approach aims to foster collaboration and commitment among direct-to-grower partners.
Sourcery has also implemented a two-tiered governance structure that gives partners equal interest and votes in the decision-making process. The company is setting aside up to 60% of all outstanding shares for partners to invest in Class B common stock shares with the option for additional investment in Class A preferred shares.
Looking ahead, Sourcery plans to raise additional growth capital through the US Securities and Exchange Commission Regulation A+ (Tier 1), which will allow partners to sell their shares and profit from their investment while also benefiting from the direct-to-grower approach to trade.
Crispin Argento, global managing director of Sourcery, explained there was a specific rationale behind this move: "When it came time to raise growth capital, we knew the type of capital we needed to transform trade for good and it was clear that neither philanthropy nor traditional venture capital was suited for our organisation.”
Yash Agarwal, executive director of Baba Spinners Limited, a new provisional manufacturer partner in Sourcery added: "As a future owner of Sourcery through this programme, Baba Spinners along with other partners can take the lead in defining and owning the future of trade, sustainable impact and traceability —creating more value and profitability for our business rather than assuming more risk and cost that comes with most other solutions.”
To maintain its position as a commercially neutral trade intermediary, Sourcery has limited share allocation and controlling interests of any one partner to five percent of all outstanding equity. This ensures a diverse partner investor pool and prevents any single shareholder from exerting undue influence.
The announcement represents a shift from conventional venture capitalists. Sourcery believes that its focus on rapid growth and immediate profitability is not well-suited for the fibre and textiles industry and that it requires steady and sustained growth to build meaningful and profitable businesses over time.
Argento explained: “Whether a brand or a grower (farmer), manufacturer or trader, all partners hold equal weight in the decision-making process of the organisation and no single shareholder can put their interests and leverage their influence over another — this way everyone benefits from grower to consumer.
“When your customers are your investors, it creates an entirely new dynamic for accountability and ensures that promises made are delivered.”
