Todor Pichurov

ProGreen Properties Inc (OTCMKTS:PGEI) Rises On News

by Todor Pichurov April 1, 2016

ProGreen Properties Inc (OTCMKTS:PGEI, PGEI message board) made another double-digit push up the charts yesterday. By the bell the price found itself some 14% up, with PGEI at $0.005 per share. The company put up another press release before the opening bell, which likely assisted the green move.

PGEI informed shareholders that the company is now done with its convertible debt. PGEI's last outstanding convertible note has been converted in full and the company is free of any dilutive convertible debt. All the debt that remains, the PR informs, is a $200 thousand owed to American Fastigheter AB and that is non-convertible and non-interest-bearing.

Now, getting rid of convertible debt is always good news, and for a company like PGEI it's twice as important, given what this same convertible debt has done to its share structure over the past few months. Flipping through the company's two most recent quarterlies reveals some staggering dilution that has already taken place.

Back on December 22, 2015 the company had just 150 million outstanding shares. By March 14 of this year this figure had gone up to 306 million. Dilution of over 100% in under 90 days is nothing to laugh at and gives enough of an insight into why PGEI is still wedged deep into double zeroes.

Here is what the company's report for the three months ended January 2015 looks like in short:

  • $41 thousand in cash
  • $74 thousand in total company assets
  • $1.9 million in liabilities
  • $32 thousand in quarterly revenues
  • $856 thousand in quarterly net loss

Those wondering how the company managed to go from 150 to 300 million shares in three months will find that subsequent to Jan 31 lender Vis Vires received over 82 million shares at $0.0005 per share. JMJ Financial, another notorious lender, got 14.5 million shares at $0.0002 apiece.

Whether the news will be enough to give PGEI a further boost up closer to a cent remains to be seen.

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