Business Brief
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.
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:
Bridge Funding
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.
CEO Salary
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.