ProGreen US Inc. (fka PGUS)

[tigerpac]

Seems like there is a Swedish version of the Cielo Mar website now with a new Board of Directors: No Jan but other names are familiar. Like Michael Hylander (Chairman).

https://www.cielomar.se/

Cielo Mar Finans AB (publ) operates within
financing of real estate projects and was established in 2013
with the aim of acquiring, managing and developing high
returned residential properties on the U.S.
Real estate market. In March 2016,
however, the then stock of properties to
ProGreen Properties Inc. (now ProGreen
US Inc.). Compensation amounted to USD 1,555,000 and
paid in cash with USD 200,000 and in addition to
preference shares worth USD 1,355,000, which
with a voucher of 7 % per year. The company chose
however, in accordance with the agreement, to receive instead
proceeds for the remaining part, USD 1,355,000 in cash,
which, according to the agreement, was originally due for payment
31 December 2017




However, the due date has
postponed due to delays in ProGreen's other
real estate projects and interest on an ongoing basis have been imposed in accordance with
agreement. At the Extraordinary General Meeting in November 2020
however, it was decided to adopt a new articles of association
this includes the adoption of a new name;
Cielo Mar Finans AB (publ). At the same time, a new
board of directors and a new CEO took over in the Company.
Among other things, the company plans to publish
interest-bearing bonds and finance
development of the area through loans to
project company Procon Baja J.V., against collateral,
mortgages, in the property (land). The area
to be exploited valued in March 2018 in
raw land execution by CBRE Richard Ellis at USD 42
million (approximately SEK 400 million) and in November
month 2021 to USD 50 million (approximately SEK 480 million
millions), and is virtually unfunded. The area has
project has been divided into five phases. Full permits for
development and construction exist for the first time
phase of 133 hectares.

On October 15, 2021, the Company's claim on
ProGreen US Inc., at the time USD 1,842,889, by
that this was converted (set off) to 7.3% of the all shares in Procon Baja J.V.S.R.L De C.V which is
owner of the project in Mexico. The Board's assessment is
that the set-off was made at a very favourable
valuation in relation to the valuation of the area
established by CBRE Richard Ellis in 2018.

During the period May-June, the Company has issued
interest-bearing bonds with the equivalent of 7,890
MSEK. The bonds have a maturity of five (5) years, and
an annual interest rate of 10 per cent paid twice
annually. The bonds have been admitted to trading on
First North Bond Market with first day of trading on
7 October, 2021. Part of the funds received through the
the bond issue has, as previously announced,
invested in Procon Baja J.V. projects in Mexico in
of loans. As mentioned above, during the period
also by set-off, acquired corresponding to 7.3%
of the shares in Procon Baja J.V

The company works continuously to find additional
funding for the project in Mexico and Procon Baja J.V.
Despite the current
market situation, continued to be positive about the opportunities
in addition.

The company has an agreement with Procon Baja J.V. to obtain
commission corresponding to 1% of all sales in
phase 1, in Procon's project in Mexico, provided that the Company
contribute to the financing of phase 1 of the project. It
total estimated sales volume in phase 1 amounts to
at full exploitation to approximately USD 415 million and has
revised up from previously approximately USD 350 million
as a result of adjusted prices for the dwellings
included in Phase 1. The large potential upside in
however, the project consists of a free
warrant that entitles the Company to within 36
months (March 2021 – March 2024), acquire a maximum of
10% of the entire project at the equivalent of the valuation
as CBRE Richard Ellis determined in March 2018.
With additional funding and in the long term as the project
exploited, the Company considers that this option may be
become very valuable.