BLOOMFIELD TOWNSHIP, MI--(Marketwired - Jul 5, 2016) - ProGreen Properties, Inc. (PROGREEN) (OTC PINK: PGEI) has mainly been engaged in acquiring, refurbishing and upgrading potential income-producing residential real estate. The properties, once refurbished, have then been leased to suitable tenants, creating good returns as rental properties.
Recently we have begun focusing on opportunities in Mexico, through investments in agricultural land in Baja California. We anticipate to increase this activity substantially over time.
Goals for the next 12-18 months
- Create a substantial revenue stream from our agriculture land developments in Baja.
- Commence property developments in Baja as well as in the US.
- Enter into a formal agreement with Soltech Energy Sweden AB and apply their solar technology to suitable properties developed by ProGreen in the US and Baja.
- Broaden our shareholder base through regular communication and interaction with shareholders and the investment community at large.
- Get the company moved up to OTCQB and move the company toward a Nasdaq listing.
Transparency towards our shareholders
True transparency of the company's activities and progress in respect to shareholders, we see as essential to attract long term investors and create shareholder loyalty. Keep the public well informed with an open line of communication, channeled mainly through our new website ProGreenUS.com, with attached Twitter feed, message board, ticker news, press releases, and share structure (updated first week of every month). We will also expand our exposure to the public through other suitable social media, webinars and investor presentations, reflecting the mission of transparency as well as growth of the company, to serve as a true barometer of PROGREEN.
The new PROGREEN
Over the past 6 months we have been working very hard with turning the company around and some significant progress has been made.
February 13. A joint venture agreement was executed with INMOBILIARIA CONTEL S.R.L.C.V. (CONTEL) for the first tract of land of approximately 300 acres for agriculture use in Baja California, Mexico. The land has since been developed and prepared for active farming with three wells providing an abundance of water (700 Gallons/minute) and is now being actively shown and marketed to potential buyers, with several parties showing serious interest.
February 17. The earlier outstanding Convertible Debenture of $476,000, was assumed by EIG Venture Capital Ltd., the company's main shareholder, in exchange for Preferred Stock in the company.
February 22. The company signed a capital injection commitment for a total of $300,000 from Jan Telander, CEO of the Company, Ulf Telander, CEO of EIG Venture Capital Ltd., and Frederic Telander, CEO of Soltech Energy Sweden AB, clearly demonstrating confidence and belief in the future of the company.
March 8. The acquisition of American Residential Gap LLC (ARG) was finalized, bringing its 14 properties on to PROGREEN's books, adding a net asset value of $1,285,000 to the balance sheet. The acquisition was a pure paper transaction with full payment being made by issuance of Special Preferred Stock to American Residential Fastigheter AB (ARG's previous sole member), convertible into common stock by March 8, 2017. The conversion price will be based on the average market price for the 20 preceding trading days of March 8, 2017. The Preferred Stock can also be paid off in cash.
March 28. The last of the "toxic" convertibles with institutional lenders, was fully converted.
May 14. A second Joint Venture Agreement was signed with CONTEL for two parcels of land, 235 Ha (588 acres) and 529 Ha (1323 acres) respectively. The land will be prepared and developed for agriculture use, to be leased to growers of produce.
June 17. PROCON BAJA JV was formed in Ensenada, Mexico, as a holding company for the JV signed on May 14. The company is owned by PROGREEN to 51% and CONTEL 49%, and will be managed by a board of Managing Directors consisting of three members, with two representing PROGREEN. At all times, at least two directors' approval will be needed for management decisions or financial transactions, giving PROGREEN, in effect, full operational control. As a majority shareholder, PROGREEN will be able to reflect its assets in Baja on the balance sheet.
June 23. PROGREEN signs definitive agreement with Tangiers Global, for a $5 million Equity Line. A maximum of 100 million shares will be registered in a S-1 Registration Statement for this funding. A note for $22,000 was also issued to cover the cost of the registration statement. The Note is convertible into common stock after six months, at a fixed price of $0.03. Tangiers was also issue 4 million warrants as commitment fee, with a strike price of $0.02.
New direction in Michigan
With steadily rising property prices here in Michigan, we find that rents cannot keep up at the same rate, resulting in lower yielding properties, if based on present values. This has led us to a change of direction.
Many potential home buyers are still today unable to obtain conventional mortgages and are therefore practically excluded from the property market. We have concluded that offering our rental properties for sale with seller financing, can be very beneficial for the company. We are able to obtain higher prices than with conventional financing, with very limited competition in the market place of properties with this type of financing. Recently sold two of our properties were sold with land contracts and a third is expected to close in July.
Outlook for the rest of 2016
We have now commenced work in Baja on the second JV tract of land of some 1900 acres, with 500-800 estimated to be suitable as prime agriculture land. Initially we will be preparing the access road (6 miles), clearing land and drilling wells.
PROGREEN is currently also looking at a number of different options, to find a suitable builder/contractor to partner up with for investment opportunities with solar technology and energy efficiency. We have an established a relationship with Soltech Energy Sweden AB, and are aiming to implement their Solar Shingle Technology in future building projects.
It is our goal to up-list off of the pink sheets to the OTCQB in the near future and show investors that we are building a strong company with a clean balance sheet as well as a steady revenue streams.
- PROGREEN Completes $1,285,000 Acquisition of American Residential Gap LLC
- PROGREEN Receives Important Capital Injection - $300,000
- Toxic Debenture Conversion Completed
- PROGREEN Forms Mexican Subsidiary -- PROCON BAJA JV
- PROGREEN Launches New Website ProGreenUS.com
- PROGREEN signs $5 million equity line of credit
About ProGreen Properties, Inc.
PROGREEN PROPERTIES, INC. (PROGREEN) (OTC PINK: PGEI) based in Bloomfield, Michigan, is engaged in the business of acquiring, refurbishing and upgrading residential real estate into modern affordable homes, offered for sale with Land Contracts to buyers still unable to obtain conventional credit. The company has also recently entered into property investments in Baja California, Mexico and will be intensifying this activity, with the aim of creating a sustainable income stream for many years to come.
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.