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Safe & Green Holdings Announces Safe and Green Development Corporation Inks Preliminary Purchase Commitment up to $2.8 million for South Texas Project

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Safe & Green Holdings Corp. (NASDAQ: SGBX) announces that its subsidiary, Safe and Green Development (SG Devco), has accepted a preliminary binding purchase commitment from Trio, acting for Choctaw American Insurance, Inc., for a development project in South Texas. The commitment includes:

1. Sale of the first 5 homes, expected to generate approximately $1,000,000 in revenue.
2. Potential purchase of up to 14 homes, generating sales of approximately $2,800,000.
3. Trio to purchase a maximum of 40% of lots within a subdivision.
4. Individual Purchase and Sale Agreements required for each home sale.
5. Closings to occur within 14 days of homes being ready for occupancy.

Paul Galvin, CEO of Safe & Green Holdings, emphasized the importance of their ecosystem in supporting SG Devco's goals through design, manufacturing, and installation capabilities.

Safe & Green Holdings Corp. (NASDAQ: SGBX) annuncia che la sua controllata, Safe and Green Development (SG Devco), ha accettato un impegno di acquisto preliminare vincolante da Trio, che agisce per conto di Choctaw American Insurance, Inc., per un progetto di sviluppo nel Sud del Texas. L'impegno include:

1. Vendita delle prime 5 abitazioni, che si prevede genereranno circa $1.000.000 di entrate.
2. Acquisto potenziale di fino a 14 abitazioni, generando vendite di circa $2.800.000.
3. Trio acquisterà un massimo del 40% dei lotti all'interno di un'area residenziale.
4. Necessità di accordi di acquisto e vendita individuali per ogni vendita di abitazione.
5. Chiusure da effettuarsi entro 14 giorni dalla disponibilità delle abitazioni per l'occupazione.

Paul Galvin, CEO di Safe & Green Holdings, ha sottolineato l'importanza del loro ecosistema nel supportare gli obiettivi di SG Devco attraverso capacità di design, produzione e installazione.

Safe & Green Holdings Corp. (NASDAQ: SGBX) anuncia que su subsidiaria, Safe and Green Development (SG Devco), ha aceptado un compromiso de compra preliminar vinculante de Trio, que actúa en nombre de Choctaw American Insurance, Inc., para un proyecto de desarrollo en el sur de Texas. El compromiso incluye:

1. Venta de las primeras 5 casas, que se espera generen aproximadamente $1,000,000 en ingresos.
2. Compra potencial de hasta 14 casas, generando ventas de aproximadamente $2,800,000.
3. Trio comprará un máximo del 40% de los terrenos dentro de una subdivisión.
4. Se requieren contratos de Compra y Venta individuales para cada venta de casa.
5. Las cerraduras deben realizarse dentro de los 14 días posteriores a que las casas estén listas para ser ocupadas.

Paul Galvin, CEO de Safe & Green Holdings, enfatizó la importancia de su ecosistema para apoyar los objetivos de SG Devco a través de capacidades de diseño, fabricación e instalación.

Safe & Green Holdings Corp. (NASDAQ: SGBX)는 그 자회사인 Safe and Green Development (SG Devco)이 Choctaw American Insurance, Inc.를 위해 활동하는 Trio로부터 텍사스 남부의 개발 프로젝트에 대한 초기 구속력 있는 구매 약정을 수락했다고 발표했습니다. 이 약정에는 다음이 포함됩니다:

1. 최초 5채의 주택 판매, 예상 수익 약 $1,000,000.
2. 최대 14채 주택의 잠재적 구매, 약 $2,800,000의 판매 발생.
3. Trio는 한 구역 내에서 최대 40%의 부지를 구매합니다.
4. 각 주택 판매에 대한 개별 구매 및 판매 계약이 필요합니다.
5. 주택이 점유 가능해진 후 14일 이내에 거래가 완료되어야 합니다.

Safe & Green Holdings의 CEO인 Paul Galvin은 SG Devco의 목표를 지원하는 데 있어 설계, 제조 및 설치 역량을 통한 생태계의 중요성을 강조했습니다.

Safe & Green Holdings Corp. (NASDAQ: SGBX) annonce que sa filiale, Safe and Green Development (SG Devco), a accepté un engagement d'achat préliminaire contraignant de Trio, agissant pour le compte de Choctaw American Insurance, Inc., pour un projet de développement dans le sud du Texas. L'engagement comprend :

1. Vente des 5 premières maisons, qui devraient générer environ $1.000.000 de revenus.
2. Achat potentiel de jusqu'à 14 maisons, générant des ventes d'environ $2.800.000.
3. Trio achetera un maximum de 40% des terrains dans un lotissement.
4. Des contrats de vente et d'achat individuels sont nécessaires pour chaque vente de maison.
5. Les clôtures doivent avoir lieu dans les 14 jours suivant la disponibilité des maisons pour l'occupation.

Paul Galvin, PDG de Safe & Green Holdings, a souligné l'importance de leur écosystème pour soutenir les objectifs de SG Devco grâce à des capacités de conception, de fabrication et d'installation.

Safe & Green Holdings Corp. (NASDAQ: SGBX) gibt bekannt, dass ihre Tochtergesellschaft, Safe and Green Development (SG Devco), ein vorläufiges verbindliches Kaufangebot von Trio, das für Choctaw American Insurance, Inc. tätig ist, für ein Entwicklungsprojekt im Süden von Texas angenommen hat. Das Angebot umfasst:

1. Verkauf der ersten 5 Häuser, die voraussichtlich etwa $1.000.000 an Einnahmen generieren.
2. Potenzieller Kauf von bis zu 14 Häusern, die voraussichtlich Verkaufszahlen von etwa $2.800.000 erzeugen.
3. Trio wird maximal 40% der Grundstücke innerhalb einer Unterteilung kaufen.
4. Einzelne Kauf- und Verkaufsverträge sind für jeden Hausverkauf erforderlich.
5. Die Abschlüsse sollen innerhalb von 14 Tagen nach Fertigstellung der Häuser für die Belegung erfolgen.

Paul Galvin, CEO von Safe & Green Holdings, betonte die Bedeutung ihres Ökosystems zur Unterstützung der Ziele von SG Devco durch Design-, Produktions- und Installationsfähigkeiten.

Positive
  • Preliminary binding purchase commitment for up to 14 homes in South Texas project
  • Potential revenue generation of approximately $2,800,000 from the project
  • Guaranteed sale of first 5 homes, expected to generate $1,000,000 in revenue
  • Quick closing process within 14 days of homes being ready for occupancy
Negative
  • None.

Insights

This preliminary purchase commitment for Safe & Green Holdings' subsidiary is a positive development, albeit with some caveats. The potential $2.8 million in revenue from up to 14 homes represents a significant opportunity for a company with a market cap of just over $2 million. However, investors should note that this is a preliminary commitment, not a guaranteed sale.

The initial $1 million revenue from the first 5 homes is more concrete and could provide a near-term boost to the company's financials. The 14-day closing period after homes are ready for occupancy suggests a relatively quick cash conversion cycle, which is positive for cash flow.

It's important to consider that this deal is to 40% of lots in a subdivision, potentially capping the upside. Additionally, the requirement for Trio-approved occupants adds an element of uncertainty to the sales process. Overall, while this news is positive, it's not a game-changer given the company's small size and the preliminary nature of the commitment.

MIAMI, FL, Oct. 11, 2024 (GLOBE NEWSWIRE) -- Safe & Green Holdings Corp. (NASDAQ: SGBX) (“Safe & Green Holdings” or the “Company”), a leading developer, designer, and fabricator of modular structures, is pleased to announce that the Company’s subsidiary Safe and Green Development Corporation (“SG Devco”) has accepted a preliminary binding purchase commitment from Trio, as Program Administrator for Choctaw American Insurance, Inc. ("Choctaw"), for its development project in South Texas.

The sale of the first 5 homes, referenced in the commitment, is expected to generate approximately $1,000,000 dollars in revenue for the Company. The purchase commitment from Trio allows for a purchase of up to 14 homes within this planned development generating sales of approximately $2,800,000. The preliminary purchase commitment sets forth Trio's agreement on behalf of Choctaw to purchase homes in the Company's South Texas development project, with exact locations and pricing terms to be confirmed. Trio shall purchase a maximum of 40% of the lots within a subdivision. The commitment stipulates that each home sale shall be subject to the execution of individual Purchase and Sale Agreements as well as the identification of a Trio approved occupant. The commitment also stipulates that each closing will occur within 14 days of the home being deemed ready for occupancy.

“Our ecosystem is integral to Safe and Green Development Corporation and its various projects,” said Paul Galvin, Chairperson and CEO of Safe & Green Holdings. “Our core competency in design as well as manufacturing and installation provides Safe and Green Development Corporation support to achieve its goals.”

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. The Company’s subsidiary, Safe and Green Development Corporation, is a leading 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, sourced from one of SG Holdings’ factories and operated by the SG Echo subsidiary.

For more information, visit https://www.safeandgreenholdings.com/ and follow us at @SGHcorp on Twitter.

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 SG Devco’s plans to sell homes in its South Texas development project to Choctaw, the sale of the first 5 homes generating approximately $1,000,000 dollars in revenue for the Company, the planned development generating sales of approximately $2,800,000. 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, but are not limited to, Safe and Green Development Corporation’s ability to construct, complete and sell to Trio, on behalf of Choctaw, homes in its South Texas development project as planned, as well as the 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, 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.

Investor Relations: 
Crescendo Communications, LLC
212-671-1020
SGBX@crescendo-ir.com


FAQ

What is the value of the preliminary purchase commitment for SGBX's South Texas project?

The preliminary purchase commitment for SGBX's South Texas project is valued at up to $2.8 million, with the first 5 homes expected to generate approximately $1 million in revenue.

How many homes can Trio purchase in SGBX's South Texas development project?

Trio can purchase up to 14 homes in SGBX's South Texas development project, with a maximum of 40% of the lots within a subdivision.

What is the closing timeline for home sales in SGBX's South Texas project?

The closing for each home sale in SGBX's South Texas project will occur within 14 days of the home being deemed ready for occupancy.

Who is the buyer in the preliminary purchase commitment for SGBX's South Texas project?

The buyer in the preliminary purchase commitment is Trio, acting as Program Administrator for Choctaw American Insurance, Inc.

Safe & Green Holdings Corp.

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