Dragni Dragnev

ProGreen Properties Inc. (OTCMKTS:PGEI) Makes A Recovery

by Dragni Dragnev February 25, 2016

ProGreen Properties Inc. (OTCMKTS:PGEI, PGEI message board) has made two impressive jumps up the charts in the last two trading sessions – but will its luck hold?

In short – there seems to be no reason to believe that it will.

Now for the longer version. In these last two sessions the ticker seems to have been driven up the charts by the announcement that the company made on Monday. It seems like three people have decided to each buy 100 thousand shares of PGEI's preferred stock, for $1 per share. Could this be what the company meant by taking steps to “dramatically improve its balance sheet”?

As far as steps go, this doesn't look like a terribly impressive one. However, that's not really the issue here. The real problem in this situation is the fact that there is no filing documenting the purchase. Are the preferred shares sold convertible into shares of common stock, and at what rate?

Suffice it to say that the circumstances surrounding PGEI are murky at best, and the few things that we do know for certain about the company fail to impress. Its latest financial report, for instance, looked like this:

  • cash - $32 thousand
  • current assets - $114 thousand
  • current liabilities - $1.2 million
  • quarterly revenues - $114 thousand
  • quarterly net loss - $121 thousand

Additionally, it is worth noting that nearly half a million of the company's current liabilities are in the form of convertible notes that could be turned into common shares of PGEI stock at absurdly low rates.

With all of this in mind, it should be easy to see why the PGEI's prospects for continuing its surge, or even retaining its gains, seem rather grim.

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