ProGreen releases ProGreen Farms™ expansion plan for 2018-2019
December 18 2017 - 8:00AM
InvestorsHub NewsWire
San Diego,
CA -- December 18, 2017 -- InvestorsHub NewsWire -- ProGreen
US, Inc. (ProGreen), (OTCQB:PGUS),
www.ProGreenUS.com, Twitter
@ProGreenUS., www.CieloMarBaja.com.
On Friday, December 8, 2017, ProGreen announced the agreement for
the supply of chili peppers to Huy Fong Foods in California for
2018. ProGreen Farms US, LLC is committed to a minimum delivery of
chili peppers representing $1,200,000. However, as the demand is
virtually unlimited, ProGreen Farms US, LLC is setting new goals of
considerably higher sales for 2018 and 2019.
We believe
we can reach $5,000,000 in sales for ProGreen Farms US, LLC in
2018. It is important to note that the expansion will be dependent
on obtaining financing to fund the considerable investment needed,
though we believe that we are now in a much better position for
financing than ever before.
With
clearing and preparation of more land within the existing Arenoso
Farm, we expect to produce closer to $2,500,000 in farming revenues
for the coming year.
We also
have an opportunity to acquire land adjacent to the Arenoso farm,
which would increase the total area from 300 to 1,050
acres. However, any new farming land will be acquired by Procon
Baja JV, with farmable tracts leased to Contel. This will result in
the asset being held by ProGreen’s subsidiary, enabling it to be
rolled over to the company’s balance sheet.
We see the
opportunity to incorporate a further 125 acres for farming in 2018
from this additional land. If acquired, it will require drilling of
more wells to obtain the necessary water needed for further
irrigation.
With this
expansion, revenues are expected to reach closer to $5,000,000 in
2018, with a 50% further increase possible for 2019.
In addition
for these expansion plans, we would the also build our own packing
plant at Arenoso, to pack the chilis directly at the farm, to be
loaded on trucks for direct delivery to Huy Fong in California.
This would save costs and simplify the logistics connected with
such an expansion.
"Setting
our goal to become the No. 1 supplier to Huy Fong, will no doubt
demand very fast expansion to get ahead of the competition, but we
do have the advantage of access to good land in a virgin farm
area", says Jan Telander
Websites:
www.ProGreenUS.com
www.CieloMarBaja.com
Follow us on social media:
https://www.facebook.com/ProGreenFarms/
https://www.facebook.com/cielomarbajacamx/
https://twitter.com/ProGreenUS
http://www.progreenus.com/blog
About ProGreenUS, Inc.
ProGreenUS, Inc., www.ProGreenUS.com, based in San Diego,
California, 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 US market,
with an abundance of land available for expansion under our JV
partnership. Procon has recently acquired 5,000 acres of land with
4.5 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."
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.
CONTACT INFORMATION
ProGreenUS, Inc.
Jan Telander, CEO
Jan@ProGreenUS.com
Phone (US): +1 (248) 805-3652
Phone (MX): +521 (646) 141-8600