SAN DIEGO, Calif., Dec. 20, 2017 (GLOBE NEWSWIRE) — ProGreen US, Inc. (ProGreen), (OTCQB:PGUS), www.ProGreenUS.com, Twitter @ProGreenUS, www.CieloMarBaja.com.
ProGreen is pleased to communicate its plan for a secured financing based on the company’s substantial assets and recent business arrangements.
Qualifying Basis for Collateralized Financing
- Procon Baja JV, ProGreen’s Mexican subsidiary, is the owner of, and holds the deeds to 5,000 acres of land with 4.5 miles of ocean front along the Pacific Coast in Baja California. The property constitutes the basis for a mortgage guarantee, for a 5-7 year loan financing of up to $10M.
- We are in the planning stage of a large real estate development (www.CieloMarBaja.com) on this prime land.
- We have an agreement in principle with a first class architectural engineering and building company, which will bring substantial resources into the planning phase of the project. This company will also be the lead contractor for the infrastructure deployment as well as for general construction. An agreement is presently being drafted and is expected to be executed this week.
- We have recently signed an agreement to supply ProGreen Farms™ produce to Huy Fong Foods, one of the largest U.S. buyers of red chili peppers.
- ProGreen Farms US, LLC, a wholly owned subsidiary to ProGreen based in San Diego, will control and invoice all sales under the agreement.
Use of Proceeds
- Eliminate debt starting with convertible notes.
- Fund further expansion of our agriculture operations at the Arenoso Farm in Baja California.
- Apply more funding to Cielo Mar, to accelerate the progress.
- Fund Cielo Mar Reservations, LLC, for the marketing of Cielo Mar in Mexico, the U.S. and Europe – for pre-sales reservations of individual lots, as well as to property developers and hoteliers pre-launch of the development.
- Provide additional working capital
“We anticipate to accept financing of up to $10M, and have already initiated discussions with one large lender,” says Jan Telander, CEO of ProGreen. “We believe gaining access to substantial capital at this time will provide a solid financial base for the company, creating the opportunity for a much faster expansion and laying the foundation for uplisting to a better exchange.”
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