BLOOMFIELD TOWNSHIP, MI--(NewMediaWire - 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.
PROGREEN US, INC., www.ProGreenUS.com, based in Bloomfield, Michigan,
has been 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. At this time the company is not
acquiring further properties, but is instead focusing on
intensifying its property investments in Baja California, Mexico,
both through its joint venture partnership with Contel as well as
through its subsidiary Procon Baja JV.
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.