BLOOMFIELD HILLS, MI–(Marketwired – Mar 14, 2016) – ProGreen Properties, Inc. (ProGreen), (OTC PINK: PGEI), is pleased to announce that the acquisition of American Residential Gap LLC (ARG), a property holding company, has now been completed after an overwhelming yes vote at the shareholders meeting on March 8 of ARG’s Swedish parent company, American Residential Fastigheter AB.
This has resulted in bringing all 14 properties owned by ARG onto ProGreen’s books for a total stated net asset value of $1,285,000.
The acquisition was cashless, paid for by ProGreen issuing 8,093,541 Class B 7% Preferred Shares to AMREFA, that are convertible into common stock after 12 months at average market price for the 20 trading days prior to March 8, 2017.
An outstanding 8% Note of $270,000 including accrued interest, in favor of AMREFA, was also cancelled under the agreement, with $70,000 being converted into the same class of preferred shares, and the remaining $200,000 to be paid back in cash from part of the proceeds from the sale of one of the 14 properties now acquired.
“This is a very big step forward for the company, resulting in a considerably improved balance sheet and further reduced debt,” says Jan Telander, President & CEO of ProGreen.
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.