SAN DIEGO, Calif., Dec. 20, 2017 (GLOBE NEWSWIRE) -- ProGreen US, Inc. (ProGreen), (OTCQB:PGUS), www.ProGreenUS.com, Twitter @ProGreenUS, www.CieloMarBaja.com.
ProGreen is pleased to communicate its plan for a secured financing based on the company’s substantial assets and recent business arrangements.
Qualifying Basis for Collateralized Financing
Procon Baja JV, ProGreen’s Mexican subsidiary, is the owner of, and holds the deeds to 5,000 acres of land with 4.5 miles of ocean front along the Pacific Coast in Baja California. The property constitutes the basis for a mortgage guarantee, for a 5-7 year loan financing of up to $10M.
We are in the planning stage of a large real estate development (www.CieloMarBaja.com) on this prime land.
We have an agreement in principle with a first class architectural engineering and building company, which will bring substantial resources into the planning phase of the project. This company will also be the lead contractor for the infrastructure deployment as well as for general construction. An agreement is presently being drafted and is expected to be executed this week.
We have recently signed an agreement to supply ProGreen Farms™ produce to Huy Fong Foods, one of the largest U.S. buyers of red chili peppers.
ProGreen Farms US, LLC, a wholly owned subsidiary to ProGreen based in San Diego, will control and invoice all sales under the agreement.
Use of Proceeds
Eliminate debt starting with convertible notes.
Fund further expansion of our agriculture operations at the Arenoso Farm in Baja California.
Apply more funding to Cielo Mar, to accelerate the progress.
Fund Cielo Mar Reservations, LLC, for the marketing of Cielo Mar in Mexico, the U.S. and Europe - for pre-sales reservations of individual lots, as well as to property developers and hoteliers pre-launch of the development.
Provide additional working capital
"We anticipate to accept financing of up to $10M, and have already initiated discussions with one large lender," says Jan Telander, CEO of ProGreen. “We believe gaining access to substantial capital at this time will provide a solid financial base for the company, creating the opportunity for a much faster expansion and laying the foundation for uplisting to a better exchange."
Websites:
Follow us on social media:
https://www.facebook.com/ProGreenFarms/
https://www.facebook.com/cielomarbajacamx/
https://twitter.com/ProGreenUS
http://www.progreenus.com/blog
About ProGreenUS, Inc.
ProGreenUS, Inc., www.ProGreenUS.com, based in San Diego, California, is engaged primarily with investments in agricultural and real estate projects in Baja California, Mexico, both through its joint venture partnership with Inmobiliaria Contel S.R.L.C.V. (Contel) as well as through its majority-owned Mexican subsidiary Procon Baja JV (Procon). Contel is now active in the high margin produce industry, growing crops for exporters to the US market, with an abundance of land available for expansion under our JV partnership. Procon has recently acquired 5,000 acres of land with 4.5 miles of oceanfront on the Bay of El Rosario, for which a master plan is being drawn for the development of a very large, totally green, international vacation and retirement community called "Cielo Mar."
This press release might contain information, which may constitute 'forward-looking statements' within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. 'Forward-looking statements' are based upon expectations, estimates and projections at the time the statements are made that involve a number of risks, uncertainties and other factors that could cause actual results or events to differ materially from those anticipated.
CONTACT INFORMATION
ProGreenUS, Inc.
Jan Telander, CEO
Jan@ProGreenUS.com
Phone (US): +1 (248) 805-3652
Phone (MX): +521 (646) 141-8600