This Company Blog post 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.
Any forward-looking information provided in this post should be considered with these factors in mind. We assume no obligation to update any forward-looking statements contained below.
The Investors page has been updated with the share structure of the Company’s common stock. As of March 6, 2019, there were 1,246,783,015 shares issued and outstanding. Of these, 146,039,963 are Restricted.
In regards to questions concerning status of the bridge funding, the company is still engaged with CMN as previously disclosed. The process is ongoing, but the funding has not yet closed.
Cielo Mar Update
The previously announced agreement with EXIT Realty for Cielo Mar sales took effect on March 1.
Preliminary drawings and renderings of single family homes, condominiums, as well as some of the key facilities are available on the Cielo Mar website (CieloMarBaja.com), and some draft marketing materials were recently posted here on the Company blog. Further updates on the market launch will be forthcoming.
Contel has been successful in securing funds needed so far this year, and has already seeded for 100 acres of onions. ProGreen is not funding further expansion of the farm for the 2019 season, and does not anticipate the need to provide any financing for operations, as Contel is working with a local bank in Baja California for this. Contel sees no limit to the increasing domestic and foreign demand for produce from Baja California, but will use this year to make their footprint in the local market, and plan accordingly toward the end of the season for future expansion.
The onions are seeded on one hectare (2.5 acres) of the farm, and plants are expected to mature sufficiently for transplanting over the full 100 acres in the first week of May.
There is high demand for various types of produce that can be farmed at Arenoso. With the need so high for all produce from the region, it is not necessary to make prior arrangements for a buyer (or buyers). However, Contel has this year agreed to grow onions for the largest supplier of onions in Baja California to the Mexican market, with good payment terms.
Contel sees this decision to grow onions for the local market as advantageous, from many angles, and is expecting a significantly higher profit margin per acre than could be achieved by exporting peppers to the U.S., as many of the operating costs have been removed. The various costs associated with exporting, not the least being sorting, secondary packing and transportation, are obviously eliminated completely. Other overhead costs have also been eliminated, and the customer will be taking delivery – picking up the produce – directly from the farm. Though the farm will not be subject to the FDA compliance requirements such as third party auditing and certification, Contel will adhere to the FDA guidelines as a standard operating procedure, using checklists with periodic self-inspections, as this was proven to be very effective as the baseline for their quality control system (in order to meet US FDA requirements for exporting last year).
Though Contel is not making any projections at this time, ProGreen is anticipating this year seeing a significant paydown of the outstanding loan for our prior financing of Contel’s development of the ProGreen Farms™ operation. Once this loan has been repaid in full, ProGreen will receive 50% of net profit from the farm operation.