Development of the farming operation is progressing smoothly, and Contel will soon have the chile pepper plants in the ground.
On the real estate side, Alejandro has used a drone for aerial photography of the Cielo Mar development site. We hope to have a video prepared in time for the Cielo Mar website launch, and will add it to the site as soon as completed. Contel shared in the use of the drone for also recording video of the Arenoso farm land, and we will post it on the agriculture project page when editing is finished.
As noted in the Subsequent Events in this week’s 10-Q filing, we are continuing to use alternative financing for funding the early stage of our projects. We see these notes as bridge financing. While we do have the $5M equity line through Tangiers Global available, we do not feel it suitable to draw on at this time. The terms are better for the new notes, as they do not include incentive shares or warrants. Our intention is to pay off all notes in cash, as we did with the Tangiers note in January and the Hopple note earlier this month, in order to avoid conversion.
The majority of our expenditures are going into the agriculture operations, much of this being initial infrastructure “one-time” costs (e.g. irrigation, fencing/installation, machinery), all of which will go on our books as receivables that will be paid back to ProGreen out of revenue from the harvest before profits. Most of the expenditure will be finished once the planting of the chile peppers is completed, and revenues will start in July with the first harvest.
A preview of the home page for the Cielo Mar website is now live at CieloMarBaja.com. We’ll be announcing the launch of the site next week. It will then include details of the first offer for reservations of single family lots at Cielo Mar.
Have a great weekend
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