MIAMI, Aug. 14,
2024 /PRNewswire/ -- Safe and Green Development
Corporation (NASDAQ: SGD) ("SG Devco" or the "Company"), announces
the successful closing of a strategic purchase agreement for
funding of up to $10 million from
Arena Investors, LP ("Arena") and its affiliates.
Arena, a global institutional asset manager with
approximately $3.5 billion of assets
under management, is known for its expertise
in providing creative capital solutions.
Maxim Group LLC was sole placement agent in connection with the
offering.
In addition to the potential to accelerate SG Devco's growth,
one of the key advantages of this investment by Arena is expected
to be the Company's access to Arena's real estate-focused
capabilities, which can provide valuable insights and resources to
help accelerate the development of SG Devco's real estate
development projects. This collaboration is expected to
enable SG Devco to leverage Arena's extensive network and
expertise, creating new opportunities and enhancing the Company's
capabilities.
David Villarreal, CEO of SG
Devco, expressed his excitement about this milestone, stating,
"This investment represents a significant achievement for SG Devco.
This strategic commitment signifies Arena's support for our vision
and demonstrates its confidence in the future potential of SG
Devco's real estate projects. We are confident that Arena's support
will not only fuel our expansion but also contribute to the
long-term success of our real estate projects."
The financing through Arena is intended
to further strengthen SG Devco's ability
to make a positive impact on the industry while delivering value to
its shareholders. The initial funding amount is $1.38 million with the access to subsequent
tranches up to a total of $10.27
million subject to various conditions as described in the SG
Devco's Form 8-K filing in relation to this transaction. SG Devco
also entered into an equity line of credit purchase agreement
("ELOC") with Arena Business Solutions, whereby the Company will
have the right, but not the obligation, subject to various
conditions, to put shares to the investor for potentially up to
$50 million.
About Safe and Green Development Corporation (SG Devco)
Safe and Green Development Corporation is a real estate
development company. Formed in 2021, it focuses on the development
of sites using purpose-built, prefabricated modules built from both
wood and steel. The thesis of development is to build strong,
innovative and green, single or multifamily projects across all
income and asset classes. Additionally, a majority-owned subsidiary
of SG DevCo, Majestic World Holdings LLC, is a prop-tech
company that has created a real estate AI Platform. The Platform
aims to decentralize the real estate marketplace, creating an
all-in-one solution that brings banks, institutions, home builders,
clients, agents, vendors, gig workers, and insurers into a
seamlessly integrated and structured AI-driven environment. MyVONIA
Innovations LLC, a wholly owned subsidiary, is the owner of
MyVONIA, which is an AI-powered personal assistant designed to help
simplify daily tasks and improve productivity for individuals and
businesses. MyVONIA aims to assist with managing both personal and
professional tasks.
About Arena Investors
Arena is an institutional asset manager founded in partnership
with The Westaim Corporation (TSXV: WED). With $3.5
billion of invested and committed assets under management as
of June 30, 2024, and a team of over 180 employees in offices
globally, Arena provides creative solutions for those seeking
capital in special situations. The firm brings individuals with
decades of experience, a track record of comfort with complexity,
the ability to deliver within time constraints, and the flexibility
to engage in transactions that cannot be addressed by banks and
other conventional financial institutions. For more
information, please visit www.arenaco.com.
Safe Harbor Statement
This press release may contain forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. All statements other than statements of historical fact
are, or may be deemed to be, forward-looking statements. In some
cases, forward-looking statements can be identified by terminology
such as "may," "should," "potential," "continue," "expects,"
"anticipates," "intends," "plans," "believes," "estimates," and
similar expressions, and include statements regarding four
additional subsequent tranches of funding for up to $10,277,777 in total, having access to
Arena's real estate focused divisions to accelerate the development
of SG Devco's real estate development projects, the investment
enabling SG Devco to leverage Arena's extensive network and
expertise, creating new opportunities and enhancing the Company's
capabilities, Arena solidifiing its support for the Company's
vision and demonstrating its confidence in the future potential of
SG Devco's real estate projects, Arena's support not only fueling
the Company's expansion but also contributing to the long-term
success of its real estate projects, the financing through Arena
strengthening SG Devco's ability to make a positive impact on the
industry while delivering value to its shareholders, having the
right to put shares to the investor under the ELOC for up to
$50 million and creating an
all-in-one solution that brings banks, institutions, home builders,
clients, agents, vendors, gig workers, and insurers into a
seamlessly integrated and structured AI-driven environment.
These forward-looking statements are based on certain
assumptions and analyses made by us in light of our experience and
our perception of historical trends, current conditions, and
expected future developments, as well as other factors we believe
are appropriate in the circumstances. Important factors that could
cause actual results to differ materially from current expectations
include, among others, the Company's ability to satisfy the
conditions to closing and close on the four additional subsequent
tranches of funding for up to $10,277,777, the Company's ability to accelerate
the development of its real estate development projects, the
Company's ability to leverage Arena's extensive network and
expertise, create new opportunities and enhance the Company's
capabilities, the Company's ability to secure funding under the
ELOC, the Company's ability to make a positive impact on the
industry while delivering value to its shareholders, the Company's
ability to create an all-in-one solution that brings banks,
institutions, home builders, clients, agents, vendors, gig workers,
and insurers into a seamlessly integrated and structured AI-driven
environment, the Company's ability to obtain the capital necessary
to fund its activities, the Company's ability to monetize its real
estate holdings, and other factors discussed in the Company's
Annual Report on Form 10-K for the year ended December 31, 2023, and its subsequent filings
with the SEC. Readers are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of the date
hereof. All forward-looking statements are qualified in their
entirety by this cautionary statement, and the Company undertakes
no obligation to revise or update this press release to reflect
events or circumstances after the date hereof.
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SOURCE Safe and Green Development Corporation
