BLOOMFIELD HILLS, MI--(NewMediaWire - Mar 20, 2017) - 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).
As announced last year in the press release on March 14, 2016, ProGreen acquired a property portfolio in Michigan from, and reduced debt to, American Residential Fastigheter AB (AMREFA-Sweden). The cost of the total transaction was $1,355,000, which was paid through the issuance of 8,534,625 Series B Preferred shares. AMREFA had the option to convert the Preferred shares into common stock after 12 months at average market price for the 20 trading days prior to March 8, 2017.
ProGreen is now pleased to announce that, after negotiations, AMREFA has agreed to a buyback of the Preferred shares, at the original stated value, in lieu of conversion into common stock. As part of the agreement, ProGreen will continue to pay interest of 7% as provided in the original sale and purchase agreement, until the amount has been paid in full. As we plan to move our operations to San Diego in the summer, we are now actively in the process of selling the property portfolio in Michigan.
"We are very pleased to have come to this agreement with AMREFA. If the preferred shares had been converted, it would have resulted in 60,282,621 new shares of common stock being issued. This solution is in keeping with our commitment to avoid any unnecessary dilution of the stock," says Jan Telander, CEO & President.
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About ProGreen US, Inc.
PROGREEN US, INC., www.ProGreenUS.com, based in Bloomfield, Michigan, is 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) as well as through its majority-owned Mexican subsidiary Procon Baja JV (Procon). Contel is now active in the high margin produce industry, growing crops for exporters to the U.S. market, with an abundance of land available for expansion under our JV partnership. Procon has recently acquired 5,100 acres of land with 4.7 miles of oceanfront on the Bay of El Rosario, for which a master plan is being drawn for the development of a very large, totally green, international vacation and retirement community called "Cielo Mar".
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