Business Summary
About ProGreen US, Inc.
& CEO Jan Telander
ProGreen US, Inc. (ProGreen), (OTCQB: PGUS), www.ProGreenUS.com, @ProGreenUS, is a US company engaged primarily with
investments in agricultural and real estate projects in Baja
California, Mexico, both through its joint venture partnership with
Inmobiliaria Contel S.R.L.C.V. (Contel) and through its
majority-owned Mexican subsidiary Procon Baja JV (Procon). Until
2016, the company was called ProGreen Properties, Inc., and was
engaged in the business of acquiring, refurbishing and upgrading
residential real estate into modern affordable homes, some being
aimed at the local real estate market and some sold to European
Property Investors. The company's name was changed effective July
22, 2016 to ProGreen US, Inc., "to better reflect the expansion of
the company's business activities going forward, investment in
agriculture land in Baja California, further planning for
residential and commercial real estate developments in the area,
with integration of advanced solar technology." The ticker symbol
was also changed, from PGEI to PGUS. Prior to ProGreen, Jan had
been a property developer in Spain for nearly 40 years, had built
several developments with his brother, Ulf, having built and sold
over 500 properties. Jan was also a founder of the Swedish solar
products manufacturer, SolTech Energy Sweden AB (SOLT:FN
Stockholm).
Agricultural Business
Unit
Joint venture (JV) agreements between ProGreen and Contel
provide for Contel to contribute the land to the joint venture, as
well as handling all planning, permits, preparation and
construction, in order for the property to be worked, leased or
sold as prime farm land. ProGreen is responsible for providing the
financing. ProGreen receives with priority the return of the
financed amount, from all revenue received, after which the profits
are split equally between the two parties.
Through the JV agreements with Contel, ProGreen controls nearly
14,000 acres of agricultural land in Baja, including 2,200 acres
plus a 3-year option on the remaining 11,500 acres. Of the total
agricultural land, ProGreen expects between 4,000 to 5,000 acres
may be suitable for farming, depending on the availability of
water. Some of the large remainder of the land which could be 9,000
to 10,000 acres will potentially be used for commercial and
residential real estate in direct support of the farming operations
and for the local economy and industry that may develop over time
as a result of these operations.
Four wells have been drilled on the first tract, producing an
abundance of water. Contel has begun their growing operation with a
first produce purchase agreement for $1.1 to $1.3 million (USD) for
red chile peppers - from Agricola El Consuela, an exporter/importer
to the U.S. market which is being grown on the first 100 acres. The
profit margin on this first crop is expected to be in the range of
55-60%. ProGreen has stated goals for Contel to increase the
growing operation to 400 acres in 2018, 800 acres in 2019, and
1,200 acres in 2020.
Real Estate Business
Unit
ProGreen's Mexican subsidiary, Procon, has purchased a tract of
land near the town of El Rosario in Baja that covers a total area
of approximately 5,000 acres with 4.7 miles of oceanfront. A Master
Plan is being created for a very large resort-type retirement and
vacation community called "Cielo Mar" that will cover all of this
land. Translated into English, Cielo means "heaven" and Mar means
"sea." The Cielo Mar planned community will be "heaven by the sea."
The first phase of the development of the master plan is underway,
and
Cielo Mar The
Community
Cielo Mar will be a totally green, all-solar gated community,
and will likely include the following, (which can be confirmed only
when the master plan is completed):
- Single Family Residences est. 7,000 lots
- Condominium Developments, Several est. 3,000 units
- Hotels, several est. 3,000 rooms
- Marina - for leisure craft
- Golf Courses 3 expected
- Sports & Tennis Center
- Bike, Hiking & Walking Trails
- Green Areas & Parks
- Museum
- Equestrian Center
- Beach Club
- Commercial Center
- Fiber Optic High Speed Internet
- Water Reservoirs
- Sewage Plants
Cielo Mar Initial Market
Introduction Offer
The general plan is to select an initial small part of the land
which will be the first phase of the development, to be completed
with all infrastructure, i.e. water, sewage, tarmacked roads,
street lighting, etc. This first phase will then serve as a
reference for the rest of the development. With this first phase,
the initial market offering will be for accepting "reservations" on
A (premium), B and C lots, for example, for early buyers to be able
to make final selection of their property locations once the master
plan has been completed. The offer for these early reservations
will come under the most attractive terms, and will allow early
buyers to have preference in the selection of sites. This offer is
expected to be made available before the end of March (2017).
Cielo Mar
Website
An initial website for the Cielo Mar community will soon be
launched, where the public will be able to follow the progress of
this planned community. The initial market introduction offer for
reservations will be included on the site, when launched.
Management Team for Cielo
Mar Development
Alejandro Espinoza Arroyo will be joining Procon as General
Manager for the Cielo Mar development in April of this year. He is
currently working as a consultant to Procon, overseeing the
production of the topographical plan that is required for creating
the Master Plan. Alejandro is an accomplished Civil Engineer who
has managed 750 construction projects and 500 public tenders,
covering a diverse range of development work for the Municipality
of Ensenada, which takes up the majority of the state of Baja
California. He was also the Plan Manager for Housing and Topography
for all of the area within the municipalities of Tijuana, Tecate,
and Rosarito Beaches for several years. In addition to his years of
service as a large-scale Plan Manager and Project Manager,
Alejandro is a well-known chronicler and historian of El Rosario,
Baja California and the surrounding region.
About
Contel
Jan Telander, President and CEO of ProGreen, has a partnership
interest and participates in the management of Contel, which was
formed in early 2016. Contel is a partnership between Jan and
Flavio Contreras Espinoza, representing an extended family of
Mexican land owners. The intent with Jan's interest in Contel was
to provide a suitable entity with which to involve ProGreen for the
development of properties in Baja. ProGreen cannot own agricultural
properties under Mexican law, though Jan's partnership interest in
Contel provides a level of control with final signing authority,
per the partnership agreement.
About
Procon Baja JV
Procon is ProGreen's joint venture subsidiary with Contel, and
is owned by ProGreen (51%) and Contel (49%) jointly. The company is
managed by a board of Managing Directors consisting of three
members, two representing ProGreen and one representing Contel. At
least two Managing Directors approval is needed for management
decisions or major financial transactions, giving ProGreen full
operational control. Procon is the holding company for the real
estate land acquired for the Cielo Mar development.
Business Development
Timeline
The Baja California, Mexico Map Image to the
left shows the key location references for the Business
Development Timeline below. The planned community, Cielo
Mar, and the agricultural land controlled by the company are in
relatively close proximity to El Rosario, approximately 150 miles
south of Ensenada. The first ProGreen Farm, Arenoso, is on the main
road called the Transpeninsular Highway, Highway 1.
The Business Development Timeline below shows
from the bottom starting in 2015 how both the Real Estate and the
Agricultural business segments have developed until now, and
looking forward. The Baja projects began with early investigation
and due diligence into an opportunity presented by Mexican land
owners with whom the company made contact, regarding options for
monetizing their land.
Business Development
Timeline
Projects Press
Releases
March 6, 2017 Agriculture Operation Launches
"ProGreen Farms" Brand
http://www.newmediawire.com/news/agriculture-operation-launches-progreen-farms-brand-4598656
January 23, 2017 Contel Signs Million Dollar Produce
Agreement
http://www.newmediawire.com/news/contel-signs-million-dollar-produce-agreement-4462364
February 02, 2017 ProGreen's Subsidiary Procon
Acquires 5,100 Acres of Ocean Front Land in Baja
http://www.newmediawire.com/news/progreen-s-subsidiary-procon-acquires-5-100-acres-of-ocean-front-land-in-baja-4495168
Investors Hangout Live Steam AMA Conference Call
February 21, 2017 ProGreen Invited to Live Stream
Online Conference Call
http://www.newmediawire.com/news/progreen-invited-to-live-stream-online-conference-call-4556857
Business / Finance Press Releases
February 22, 2017 ProGreen CEO Provides a Second $250,000
Bridge Financing to the Company
http://www.newmediawire.com/news/progreen-ceo-provides-a-second-250-000-bridge-financing-to-the-company-4560474
February 1, 2017 $5 Million Equity Line Declared
Effective
http://www.newmediawire.com/news/5-million-equity-line-declared-effective-4492314
December 7, 2016 ProGreen Reduces Authorized Shares
of Common Stock
http://www.newmediawire.com/news/progreen-reduces-authorized-shares-of-common-stock-4315129
November 22, 2016 ProGreen Gets Further Funding From
the CEO
http://www.newmediawire.com/news/progreen-gets-further-funding-from-the-ceo-4247819
September 14, 2016 ProGreen Uplists to OTCQB
http://www.newmediawire.com/news/progreen-uplists-to-otcqb-3949855
July 21, 2016 ProGreen Properties, Inc. Changes
Its Name to ProGreen US, Inc.
http://www.newmediawire.com/news/progreen-properties-inc-changes-its-name-to-progreen-us-inc-3739149
Safe
Harbor:
The information presented
on this page may 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