PGUS- AS- 950M OS- 349M Float- 227M News out!!!
A) $5 Million Equity Line Declared Effective
BLOOMFIELD TOWNSHIP, MI--(Marketwired - Feb 1, 2017) - ProGreen US, Inc. (ProGreen), (OTCQB: PGUS) www.ProGreenUS.com, Twitter alerts @ProGreenUS. The registration statement for the Equity Line financing with Tangiers, as announced on June 28, 2016, was declared effective today by the Securities & Exchange Commission (SEC). The Company has the option as to whether to use this financing, which would only be accessed when favorable for the Company and its stockholders
B) Item 8.01 Other Events.
On January 23, 2017, ProGreen US, Inc.’s subsidiary in Baja California, Mexico, Procon Baja JV (Procon), entered into a definitive purchase agreement for, and has taken possession of, a large tract of land situated near the town of El Rosario in Baja California. The land, planned for residential real estate development, is bordering the Pacific Ocean and covers a total area of 2,056 ha (5,100 acres) with 7,5 km (4.7 miles) of ocean front.
C) Contel Signs Million Dollar Produce Agreement
BLOOMFIELD TOWNSHIP, MI--(Marketwired - Jan 23, 2017) - ProGreen US, Inc (PROGREEN), (OTCQB: PGUS), www.ProGreenUS.com, Twitter @ProGreenUS, is pleased to announce that the company's JV partner in Baja California, Mexico, Inmobiliaria Contel (CONTEL), signed an agreement with a major exporter of produce to the US. CONTEL will be growing red chilies on a 40 ha (100 acres) portion of the of the farmable 60 ha (150 acres) of the first tract of land under the JV with PROGREEN that was reported on previously. The buyer has committed $48,000 as up-front payment to secure the agreement.
The farming under this agreement, which is priced in US dollars, is estimated to yield 3,000-3,600 tons of produce with a value of $1.1 - 1.3 million and an estimated net margin of 55-60%. The JV agreement provides for 50/50 split of profits between PROGREEN and CONTEL. However, PROGREEN will first recover all of its investment in the operation prior to profits being distributed.
The produce will be harvested in 2-3 cuts, with the first expected for late June, and delivery will be to the buyer's packing plant in Ensenada, B.C.
CONTEL has intentionally chosen to limit this agreement to 40 ha giving the option to diversify production. The buyer has however announced serious interest in increasing the scope of future agreements for production of chilies to 100 ha (250 acres), to be able to meet demand.
"This is a big first step for CONTEL and PROGREEN under the JV partnership, as it solidifies an agreement with a major player as a first buyer. It also shows, in real terms, the enormous financial advantage, growing produce has to leasing the land, which would have resulted in an income of some $120,000/year for the whole land," says Jan Telander, President and CEO.
CEO owns almost 20M common shares of stock.
CEO Tweet concerning $5M line of equity
The company has no intention to draw on the Equity Line at levels anywhere near the present share price
PGUS
