Name of Listed Issuer: Captiva Verde Industries Ltd. (the “Issuer” or the “Company”).
Trading Symbol: VEG Number of Outstanding Listed Securities: 60,648,231
Date: August 5, 2016 Report on Business
1. Provide a general overview and discussion of the development of the Issuer’s business and operations over the previous month. Where the Issuer was inactive disclose this fact. During the month of June 2016, the Issuer continued with its USDAcertified organic vegetable operation and sold its USDA-certified organic products to a whole host of regional food companies. Management continued to focus on marketing 90% of the Issuer's sales secured by longterm produce purchase agreements. The Issuer's capabilities and food safety programs are essential in the fresh organic produce business. The Issuer has earned both the USDA organic certification and is also certified food safety compliant under the most stringent food safety certification programs in the industry; grading 99% and 100% in its final grades.
2. Provide a general overview and discussion of the activities of management. The Issuer is engaged in large-scale commercial organic farming operations in the USA (“US”). In this regard, among other duties, management has been undertaking the following: - Working with labour contractors to harvest the Issuer’s 604 acres of leased land in Arizona by weeding, irrigating, harvesting, and fertilizing the fields. - Working with various vendors for the ordering and/or delivery of fertilizers, seeds, irrigation pipes, and farming equipment. - Negotiations for additional farming land in Arizona, Tehachapi and Imperial Valley, California. - Working on increasing long term contracts with customers.
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3. Describe and provide details of any new products or services developed or offered. For resource companies, provide details of new drilling, exploration or production programs and acquisitions of any new properties and attach any mineral or oil and gas or other reports required under Ontario securities law. None.
4. Describe and provide details of any products or services that were discontinued. For resource companies, provide details of any drilling, exploration or production programs that have been amended or abandoned. None.
5. Describe any new business relationships entered into between the Issuer, the Issuer’s affiliates or third parties including contracts to supply products or services, joint venture agreements and licensing agreements etc. State whether the relationship is with a Related Person of the Issuer and provide details of the relationship. None.
6. Describe the expiry or termination of any contracts or agreements between the Issuer, the Issuer’s affiliates or third parties or cancellation of any financing arrangements that have been previously announced. None.
7. Describe any acquisitions by the Issuer or dispositions of the Issuer’s assets that occurred during the preceding month. Provide details of the nature of the assets acquired or disposed of and provide details of the consideration paid or payable together with a schedule of payments if applicable, and of any valuation. State how the consideration was determined and whether the acquisition was from or the dispositions was to a Related Person of the Issuer and provide details of the relationship. No material acquisitions. As announced in the Issuer’s news release of June 23, 2016, the Issuer is in negotiations for the acquisition of a revolutionary patented technology to reduce important water costs in agriculture. The Issuer is reviewing the patent(s), conducting its due diligence and negotiating for the best outcome to acquire this significant water related asset.
8. Describe the acquisition of new customers or loss of customers. The Issuer has previously reported eight (8) customers who have been purchasing its organic produce. The issuer continues to supply these customers.
9. Describe any new developments or effects on intangible products such as brand names, circulation lists, copyrights, franchises, licenses, patents, software, subscription lists and trade-marks. None.
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10. Report on any employee hirings, terminations or lay-offs with details of anticipated length of lay-offs. None.
11. Report on any labour disputes and resolutions of those disputes if applicable. None.
12. Describe and provide details of legal proceedings to which the Issuer became a party, including the name of the court or agency, the date instituted, the principal parties to the proceedings, the nature of the claim, the amount claimed, if any, if the proceedings are being contested, and the present status of the proceedings. The issuer is disputing a trade payable with a vendor and is seeking to reconcile the difference. A former COO is taking action for wrongful dismissal and the issuer is disputing this claim. The Issuer is suing a former law firm for professional malpractice. All the above are not material to the Issuer’s financial statements with the exception of the malpractice suit where the issuer is seeking at least USD $5 Million in damages.
13. Provide details of any indebtedness incurred or repaid by the Issuer together with the terms of such indebtedness. The Issuer incurs trade payable in the normal course of its business. For further details, see the Issuer’s periodic Financial Statements and accompanying management discussion and analysis filed on SEDAR and available under the Issuer’s SEDAR profile at www.SEDAR.com.
14. Provide details of any securities issued and options or warrants granted. Security Number Issued Details of Issuance Use of Proceeds N/A
15. Provide details of any loans to or by Related Persons. None.
16. Provide details of any changes in directors, officers or committee members. None.
17. Discuss any trends which are likely to impact the Issuer including trends in the Issuer’s market(s) or political/regulatory trends. The Issuer’s organic farming business involves certain risks and uncertainties that are inherent to the Issuer’s industry. Please refer to the “Risk Factors” section of the Listing Statement dated June 1, 2015, which is available on the Canadian Securities Exchange’s website at
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www.thecse.com. Please also refer to the “Risks & Uncertainties” section of the Issuer’s management discussion and analysis for the year ended December 31, 2015, which is available under the Issuer’s SEDAR profile at www.sedar.com.
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Certificate Of Compliance The undersigned hereby certifies that:
1. The undersigned is a director and/or senior officer of the Issuer and has been duly authorized by a resolution of the board of directors of the Issuer to sign this Certificate of Compliance.
2. As of the date hereof there were is no material information concerning the Issuer which has not been publicly disclosed.
3. The undersigned hereby certifies to the Exchange that the Issuer is in compliance with the requirements of applicable securities legislation (as such term is defined in National Instrument 14-101) and all Exchange Requirements (as defined in CNSX Policy 1).
4. All of the information in this Form 7 Monthly Progress Report is true.
Dated August 5, 2016
Jeff Ciachurski Name of Director or Senior Officer
/s/ “Jeff Ciachurski”
Signature
Director/CEO Official Capacity Issuer Details
Name of Issuer Captiva Verde Industries Ltd For Month End July 2016 Date of Report YY/MM/D 2016/08/1
Issuer Address Suite 201 78080 Calle Amigo City/Province/Postal Code La Quinta, California, USA, 92253
Issuer Fax No. 760 457-3018
Issuer Telephone No. (949 ) 903-5906
Contact Name Jeff Ciachurski
Contact Position Director/CEO
Contact Telephone No. (949 ) 903-5906
Contact Email Address westernwind@shaw.ca Web Site Address www.veg.net
FORM 7 – MONTHLY PROGRESS REPORT June 2016
