PROGREEN US, INC. (OTCMKTS:PGUS) Files An 8-K Termination of a Material Definitive AgreementITEM 1.02. Termination of Material Definitive Agreement.
On May 30, 2018 the Company entered into a financing commitment agreement with Global Capital Partners Fund Limited (the “Lender”) for a two-year $5,000,000 financing (the “Loan”) secured by a first mortgage lien on our Cielo Mar property in Baja California, Mexico. The financing commitment was subject to execution of definitive agreements and fulfillment of the closing conditions in such agreements. The commitment provided that closing will take place prior to July 15, 2018, unless extended in writing by the Lender. On July 19, 2018, the Lender unilaterally granted a 60 day extension of the commitment to September 15, 2018.
On August 28, 2018 we notified the Lender that we have terminated the financing commitment, effective August 31, 2018, due to the Lender’s acknowledged inability to fulfill its obligations to provide the Loan consistent with the terms of the commitment.
We have now taken up negotiations for an equivalent bridge with a lender that was on the short list before entering into the commitment with GCP Fund, although there is no assurance that we will be able to arrange this financing. If we do not secure this or a similar bridge financing, this would have a significant adverse effect on our operations in Baja California and on the development of the Cielo Mar Project.
About PROGREEN US, INC. (OTCMKTS:PGUS)
ProGreen US, Inc. (ProGreen), formerly ProGreen Properties, Inc., owns and manages residential real estate rental property in the Oakland County, Michigan area. The Company is engaged in acquiring, refurbishing and upgrading residential real estate. The Company purchases residential real estate apartment homes, condominiums and houses in the State of Michigan. The Company is focusing its investments and interest in agricultural land in Baja California, Mexico. The Company’s investment properties are marketed by ProGreen Realty LLC, a subsidiary of ProGreen and managed by its subsidiary, Progreen Properties Management LLC. In addition, the Company’s subsidiary, ProGreen Construction LLC, performs various construction and development services for properties, which are held and under development. As of April 30, 2016, the Company owned 14 properties.