ProGreen US Inc. (fka PGUS)

[Davis_Elite]

It's great to see the deeper interest in understanding ProGreen. It tells me that, no matter whether the interest is for long-term investing, flipping around a core position, or simply a short-term swing trade, ProGreen is beginning to draw a crowd that is thinking about more than just a one-off momo trade.

The long and short of what follows: It's pretty clear that produce harvested THIS YEAR will show on our books. Last year's harvest did not get billed through any U.S. entity, it was done from the farm in Baja. So it would not show on PGUS books as revenue. Instead, we did not "see" the $200K at all last year. What we "saw" on our books was a partial repayment of $50K for funds "loaned" to Contel for starting up the farming operation. The remaining $150K of the $200K in revenue generated from the farm went to operating expenses for the farm.

As described and shown in various docs on the company website as well as blog updates, etc., last year was a "development" year. The farm operation was essentially a "prototype" or "pilot operation" as I think it was stated. Like any business development activity, initial costs are MUCH higher than long-term, ongoing costs, because it's a "development effort." Once proven and successful, it can be replicated and then multiplied to produce lucrative returns for stakeholders (that includes US: shareholders). Last year was VERY successful, in multiple ways. Maybe not what near-sighted momo penny stock players are looking for in a shoot-the-moon get-rich-overnight scenario, but it's the next best thing, IMO, and without the considerable risk of those crappy-ass BS momo PnD stock plays.

So NOW we are generating revenue at a rate of what, 5 truckloads at 20 tons each, every week, for 100 tons per week and $50K per week, versus what? $200K for all of last season (which was our 'pilot' operation?)? This is pretty F'n phenomenal in my book! To see Jan pull this off - a successful 2018 harvest of $1.2M after just starting this farming operation last year... NOT like any other real estate penny stock I've seen!!

(page 17)
ProGreen Farms US, LLC
- ProGreen Farms US, LLC (FarmsUS) is a whollyowned
subsidiary of ProGreen US, Inc.
- FarmsUS was set up to handle sales/distribution of
Contel’s produce.
- FarmsUS will invoice and receive payment from
customers of produce from ProGreen Farms.

Organization / structure of ProGreen US, re Procon/Cielo Mar and the ProGreen-Contel / ProGreen Farms joint operation
https://www.progreenus.com/wp-content/uploads/2018/05/ProGreenUS-BusinessSummary-201802.pdf (pages 17 & 18)
(page 18)


You can see from these slides that (FarmsUS) was set up to "handle sales/distribution of Contel's produce" (translated, I think this means that it was set up to "handle the money in the U.S." so that the revenue goes on our books).

Look here:

Press Release | 12/06/2017 - ProGreen Forms Subsidiary for Direct Sales of ProGreen Farms Fresh Produce to the U.S.
https://www.otcmarkets.com/stock/PGUS/news/ProGreen-Forms-Subsidiary-for-Direct-Sales-of-ProGreen-Farms-Fresh-Produce-to-the-U-S-?id=177346&b=y

...announcing the formation of a new wholly-owned subsidiary, ProGreen Farms US, LLC, for the distribution of ProGreen Farms™ fresh produce within the United States...

Contel is currently in the late stage of the first year’s harvest of chili peppers at Arenoso, while at the same time planning and taking steps for expansion, as well as to increase output/yield and overall efficiency of the operations for 2018.

Followed by this PR, 2 days later:

Press Release | 12/08/2017 - ProGreen Announces Supply Agreement For Sriracha Hot Sauce Producer, Huy Fong Foods, Inc.
https://www.otcmarkets.com/stock/PGUS/news/ProGreen-Announces-Supply-Agreement-For-Sriracha-Hot-Sauce-Producer--Huy-Fong-Foods--Inc-?id=177596&b=y

...pleased to announce that an agreement has been executed to supply chili peppers to Huy Fong Foods, Inc. (Huy Fong), maker of the original Sriracha Hot Sauce – also commonly known as “Rooster” sauce. Chili peppers grown and harvested by the ProGreen Farms™ operation at Rancho Arenoso will be delivered to Huy Fong’s plant in Irwindale, California.

Under the agreement, ProGreen Farms US, LLC will supply a specified minimum quantity of chili peppers to Huy Fong in 2018 for an aggregate value of $1,200,000, with no maximum limit. The upper limit on sales that can be realized through this agreement will be determined by the growing and output capacity of the farming operations in Baja California.

ProGreen Farms™ operations in Baja California have been working on plans for increasing capacity at the Arenoso farm substantially, and have already taken some of the initial steps.