Jan23 Contel Signs Million Dollar Produce Agreemen

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SOURCE: ProGreen US, Inc.
ProGreen US, Inc.
January 23, 2017 08:00 ET

Contel Signs Million Dollar Produce Agreement

BLOOMFIELD TOWNSHIP, MI--(Marketwired - 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.

CONTACT INFORMATION
For further Information, please contact:
Jan Telander
President and CEO
jan@ProGreenUS.com
Phone: 1 (248) 805-3652
www.ProGreenUS.com

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