Safe and Green Development Corporation Provides Updates on Key Strategic Transactions
22 May 2023 - 10:30PM
Business Wire
Asset monetization and non-dilutive financing
support Company’s growth initiatives
Safe & Green Holdings Corp. (NASDAQ: SGBX) (“Safe &
Green Holdings” or the “Company”), a leading developer, designer,
and fabricator of modular structures for residential, commercial,
and point-of-care medicine, today provided an update on the planned
sale of its Lago Vista property, as well as the pending purchase
and refinancing of its Waldron production facility.
The Lago Vista property auction is slated to end on June 7,
2023, with the closing of the transaction expected approximately a
month later. The site, initially acquired for about $3.5 million,
is expected to be sold for a substantially higher sum than the
purchase price. The Company is also planning to acquire its Waldron
manufacturing facility in the coming weeks. This facility has been
under lease since November 2021 and came with an option to purchase
the facility for $1 million. Subsequent to the original lease
agreement, the Company has funded approximately $2.5 million of
upgrades to the facility. As a result, the facility was recently
appraised for $5.2 million, which is approximately $1.7 million
over the Company’s all-in costs. The Company plans to secure a
commercial mortgage on the facility, which would fund the purchase
and provide the Company additional working capital. Additionally,
the Company secured $475 thousand in net proceeds of non-dilutive
funding through a cash advance agreement. It is anticipated that
these transactions will furnish the Company with significant
non-dilutive financing intended to further accelerate the Company’s
growth trajectory.
“When we reported our 2022 year-end results, we expressed our
conviction that our assets could be monetized at attractive returns
and/or leveraged to obtain low-cost debt funding for the Company,
substantially reducing our dependence on the equity markets to fund
our growth initiatives,” stated Paul Galvin, the Chairman and CEO
of Safe & Green. “These transactions illustrate the strength of
our asset base and ability to secure non-dilutive funding. The cash
advance agreement fortifies our operating reserves and strengthens
our balance sheet as we move closer to the completion of the Lago
Vista and Waldron transactions. Furthermore, we can leverage our
valuable assets for similar, non-dilutive financing down the road,
if and when needed.”
About Safe & Green Holdings
Corp.
Safe & Green Holdings Corp., a leading modular solutions
company, operates under core capabilities which include the
development, design, and fabrication of modular structures, meeting
the demand for safe and green solutions across various industries.
The firm supports third party and in-house developers, architects,
builders, and owners in achieving faster execution, greener
construction, and buildings of higher value. Safe and Green
Development Corporation is a leading real estate development
company. Formed in 2021, the company focuses on the development of
sites using purpose built, prefabricated modules built from both
wood & steel, sourced from one of Safe & Green Holdings
factories and operated by SG Echo. For more information, visit
www.safeandgreenholdings.com.
Safe Harbor Statement
Certain statements in this press release constitute
"forward-looking statements" within the meaning of the federal
securities laws. Words such as "may," "might," "will," "should,"
"believe," "expect," "anticipate," "estimate," "continue,"
"predict," "forecast," "project," "plan," "intend" or similar
expressions, or statements regarding intent, belief, or current
expectations, are forward-looking statements. These forward-looking
statements are based upon current estimates and assumptions and
include statements regarding the Lago Vista property auction ending
on June 7, 2023, the closing of the Lago Vista property sale being
expected approximately a month after the closing of the auction,
selling the Lago Vista property for a substantially higher sum than
the purchase price, acquiring the Company’s Waldron manufacturing
facility in the coming weeks, securing a commercial mortgage on the
Waldron facility, furnishing the Company with significant
non-dilutive financing to further accelerate the Company’s growth
trajectory and leveraging the Company’s assets for similar,
non-dilutive financing down the road, if and when needed. While the
Company believes these forward-looking statements are reasonable,
undue reliance should not be placed on any such forward-looking
statements, which are based on information available to us on the
date of this release. These forward-looking statements are subject
to various risks and uncertainties, many of which are difficult to
predict that could cause actual results to differ materially from
current expectations and assumptions from those set forth or
implied by any forward-looking statements. Important factors that
could cause actual results to differ materially from current
expectations include, among others, the Company’s ability to sell
the Lago Vista property as planned, the Company’s ability to
acquire the Waldron manufacturing facility in the coming weeks, the
Company’s ability to secure a commercial mortgage on the Waldron
facility, the Company’s ability to leverage its assets for similar,
non-dilutive financing down the road, if and when needed, , the
Company’s ability to spin out Safe and Green Development
Corporation as planned, the Company’s ability to expand within its
various verticals, the Company’s ability to position itself for
future profitability, the Company’s ability to maintain compliance
with the NASDAQ listing requirements, and the other factors
discussed in the Company’s Annual Report on Form 10-K for the year
ended December 31, 2022 and its subsequent filings with the SEC,
including subsequent periodic reports on Forms 10-Q and 8-K. The
information in this release is provided only as of the date of this
release, and we undertake no obligation to update any
forward-looking statements contained in this release on account of
new information, future events, or otherwise, except as required by
law.
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version on businesswire.com: https://www.businesswire.com/news/home/20230522005285/en/
Investor Relations: Crescendo Communications, LLC
212-671-1020 SGBX@crescendo-ir.com
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