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We have received a number of questions regarding information provided in the Form 10-Q that was filed on Monday. We can share the following details for clarification of certain items. As we have stated previously, we can say nothing further about the bridge funding than what is stated in the filing and here for clarity, as we are bound by non-disclosure until it closes. Details concerning the market launch of Cielo Mar will be forthcoming.
Answers to Questions Concerning the 10-Q Filed on Monday:
As stated, we are expecting to close on the first $2.5M tranche of the bridge financing in April. We elected to go with this particular offer, as it will not encumber the land asset before the next tranche, which also provides more flexibility for progressing to the larger funding.
Mr. Telander has not taken a salary since early 2017, and it is not accruing.
Cielo Mar Property
As explained in the 10-Q, the Cielo Mar land is described as “Land under development” with an Asset value of $500,000. The company owes a balance of $400,000 to the seller. However, there is no mortgage on the property. Procon holds the title and deeds to the property, unencumbered. The $400,000 balance is owed to the seller as a note due. This was a precondition for obtaining the rezoning, that we resolved in November, where the government requires that the land cannot be encumbered in a way that the seller could take back the land for any reason, including non-payment.