AGRIEURO CORP. (OTCBB:EURI) Files An 8-K Other Events
Item 8.01 Other Events
AgriEuro Corp. (the Company) owns 97.6% of the outstanding equity
interests and is the majority shareholder of S.C. Piscicola Tour
A.P. Periteasca S.R.L., a Romanian limited liability company
(SRL). In the fourth quarter of 2014 SRL commenced operations in
the agriculture industry when it commenced farming operations of
reeds on its property located outside of Constanta, Romania, to a
concession agreement with the local government signed in October
2014, that allows SRL to sell the economic products produced on
its property. The reeds are sold to SRLs customers and then
processed into insulation used in the construction of residential
and commercial structures. From the current 1709 hectares, 700
hectares are occupied by quality water-reed plants, which can be
harvested during the cold season from 15th November to
15th March. Demand for our water reeds in northern
counties is very large, due to its unique qualities of being
water proof, and cold and hear resistant, which allows them to
act as high quality insulation when processed by our customers.
SRL entered into an agreement to sell up to a maximum of 250,000
bundles of reeds beginning in May 2015. The reeds have a growing
season of mid-April through mid-November are generally harvested
from mid- November through late March each year, after which the
land goes through a controlled burn to return it to its initial
growing state. The 2015 reed contract included pass through
provisions for normal delivery costs and the Company negotiated a
selling price of Euro 1.60 per bundle delivered. In 2015, the
Company experienced delays in the transportation and quality
control process of selecting only those reeds that meet the
quality standards required of its customer, due primarily to this
being the first year of operation. In addition, the Company has
yet to acquire harvesting equipment, and instead in 2015 relied
on manual labor to complete the harvest. Also, because this was
the first harvest of reeds to be used, the original reeds within
the 700 hectares were of a lesser quality. Because of the harvest
in 2015, it is expected that future harvests will have a greater
natural yield of higher quality reeds. As a result of the delays
and issues with the harvest, SRL sold a total of approximately
121,000 bundles and realized an average selling price of
approximately Euro 1.37 per bundle, for total gross revenues of
$202,530 through December 31, 2015. Because of issues with the
weather and day laborers, the 2015 harvest for sale in 2016 was
started late, in the back half of December 2015. As such, there
were no costs included in Inventory as of December 31, 2015. The
2016 harvest will not be as large as it could be as the Company
was unable to secure harvesting equipment and will again rely on
manual labor for the 2015-2016 harvest.
The 2016 harvest yielded 143.820 bundles and realized an average
selling price of approximately Euro 1.55 per bundle, for total
gross revenues of Euro 222,921 through December 31, 2016.
About AGRIEURO CORP. (OTCBB:EURI)
AgriEuro Corp., formerly Artex Corp., is engaged in the business of agriculture, aquaculture and hospitality. The Company holds interests in S.C. Piscicola Tour A.P. Periteasca S.R.L. (SRL). SRL’s investments and assets are located in the country of Romania in the Periteasca – Leahova area, on the administrative territory of Murighiol locality, Tulcea County, between Black Sea, Grindul Lupilor and Lagoon Complex Razim – Sinoe. SRL’s property is made up of an area of approximately 1,709 hectares of land, in the Danube Delta (the Property). SRL operates a reed farm on a section of the Property that consists of approximately 700 hectares. SRL also operates a fish farm on a section of the Property that consists of approximately 1,009 hectares. SRL’s building complex at the Black Sea shore has a constructed surface of approximately 1,200 square meters. SRL also operates the Island Holiday Complex, located inside the Natural Reservation of Danube, Tulcea County in Channel area. AGRIEURO CORP. (OTCBB:EURI) Recent Trading Information
AGRIEURO CORP. (OTCBB:EURI) closed its last trading session up +0.0018 at 0.0258 with 275,396 shares trading hands.
