BLOOMFIELD HILLS, MI–(Marketwired – Mar 20, 2017) – ProGreen US, Inc. (ProGreen), (OTCQB: PGUS), www.ProGreenUS.com, @ProGreenUS; As announced last year in the press release on March 14, 2016, ProGreen acquired a property portfolio in Michigan from, and reduced debt to, American Residential Fastigheter AB (AMREFA-Sweden). The cost of the total transaction was $1,355,000, which was paid through the issuance of 8,534,625 Series B Preferred shares. AMREFA had the option to convert the Preferred shares into common stock after 12 months at average market price for the 20 trading days prior to March 8, 2017.
ProGreen is now pleased to announce that, after negotiations, AMREFA has agreed to a buyback of the Preferred shares, at the original stated value, in lieu of conversion into common stock. As part of the agreement, ProGreen will continue to pay interest of 7% as provided in the original sale and purchase agreement, until the amount has been paid in full. As we plan to move our operations to San Diego in the summer, we are now actively in the process of selling the property portfolio in Michigan.
“We are very pleased to have come to this agreement with AMREFA. If the preferred shares had been converted, it would have resulted in 60,282,621 new shares of common stock being issued. This solution is in keeping with our commitment to avoid any unnecessary dilution of the stock,” says Jan Telander, CEO & President.
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.