BLOOMFIELD HILLS, MI — (Marketwired) — 06/23/16 — ProGreen Properties, Inc. (PROGREEN) (OTC PINK: PGEI) is pleased to announce that the formation of Procon Baja JV (PROCON) has been completed. PROCON is our joint venture subsidiary with Inmobiliaria Contel (CONTEL) in Baja California, Mexico. PROCON is owned by PROGREEN (51%) and CONTEL (49%) jointly. The company will be managed by a board of Managing Directors consisting of three members. Two will be representing PROGREEN and one representing CONTEL. At least two Managing Directors approval will be needed for management decisions or approvals of financial transactions, giving PROGREEN full operational control.
PROCON will be the holding company for the land referred to in press release dated May 17, 2016. This joint venture involves approximately 1,900 acres, with some 500-800 acres suitable for farming, depending on the amount of water that could be extracted through the drilling of fresh water wells.
“We are very pleased that we were able to form a subsidiary for our JV where PROGREEN can be the majority shareholder and therefore will be able reflect our share of the JV assets on the balance sheet. A majority interest in agriculture land can normally only be held by Mexicans, but we managed to find a structure for the JV that will permit assets of the JV to be reflected in our financial statements,” says Jan Telander, President.
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.