Safe and Green Development Corporation Expects to Close the Sale of St. Mary’s Site in May 2024

Rhea-AI Summary

Safe and Green Development (SG Devco) is extending the closing date for the sale of its St. Mary’s site to May 30, 2024, potentially concluding by May 15th. The transaction will bring in over $1M in capital without dilution, enhancing operational capabilities. The sale will be facilitated through SG Devco’s online real estate platform, Xene Home, aiming to modernize real estate transactions. CEO David Villarreal is optimistic about the extension, highlighting the revenue boost in Q2 2024 and the strategic benefits for SG Devco's market position.

Positive

• The sale of the St. Mary’s site will bring in over $1M in non-dilutive capital, enhancing operational capabilities.
• The transaction is expected to conclude by May 30, 2024, potentially closing earlier on May 15th.
• The use of SG Devco’s online real estate platform, Xene Home, will streamline the transaction process and provide a secure digital experience.

Negative

• None.

Insights

Financial Analyst

The sale of the St. Mary's site by SG Devco is set to introduce over $1M in non-dilutive capital to the company's balance sheet. This is a positive development for SG Devco, as it provides an influx of capital without the need to issue new shares, thereby avoiding shareholder dilution. The additional funds could potentially enhance the company's ability to invest in its operational capabilities or to pay down existing debt, which may positively influence its stock valuation. Considering the announcement's timing, investors can expect this transaction to show its effects on the financial results of Q2 2024, providing a clearer picture of its impact on the company's revenue during the next earnings call. Moreover, the use of their proprietary platform, Xene Home, for the transaction indicates SG Devco's confidence in their digital capabilities, potentially showcasing an innovative edge over competitors in the real estate sector.

Real Estate Market Analyst

The utilization of SG Devco's Xene Home online platform for the closing of this real estate transaction is an indication of the company's commitment to integrating technology within its business model. By streamlining transactions digitally, SG Devco could be setting a new industry standard, potentially reducing costs associated with traditional real estate transactions and offering a more efficient experience for clients. If successful, this method could attract more users to the platform, increasing its revenue potential. The strategic sale of the St. Mary's property may also reflect a deliberate capitalization on market conditions, suggesting that SG Devco is actively managing its asset portfolio for optimal financial performance. This could instill confidence among investors, particularly those interested in companies with forward-thinking management practices.

MIAMI, Fla, April 30, 2024 (GLOBE NEWSWIRE) -- Safe and Green Development Corporation (NASDAQ: SGD) (“SG Devco” or the “Company”) is pleased to announce it has entered into an amendment to its original contract for the sale of its St. Mary’s site to extend the closing date. After evaluating the current timeline, the closing of this transaction is expected by May 30, 2024, with the transaction potentially concluding as early as May 15th. This transaction will yield in excess of $1M in non-dilutive capital, bolstering the Company's operational capabilities.

Furthermore, the Company announced that the closing for this transaction will take place via SG Devco’s online real estate market platform, Xene Home. This platform offers a seamless and secure digital experience, seeking to revolutionize the way real estate transactions are conducted.

David Villarreal, CEO of Safe and Green Development Corporation, expressed his enthusiasm regarding the extension of the closing date, stating, “We are delighted to announce the extension of the closing date for the sale of our St. Mary’s site. This transaction represents a significant step forward for SG Devco, allowing us to unlock additional capital while focusing on our core business objectives. Additionally, we will recognize significant revenue in Q2 of 2024 as a result of this transaction. By utilizing our online real estate market platform, Xene Home, we are streamlining the transaction process, which should ensure a seamless experience for all parties involved.”

“The sale of the St. Mary’s property represents a strategic move that will strengthen SG Devco’s position in the market and allow us to capitalize on emerging opportunities. We remain committed to delivering exceptional experiences to our customers and partners, while maintaining a strong and sustainable financial position,” Villarreal continued.

About Safe and Green Development Corporation
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 the XENE Home Platform. It is powered by advanced AI technology which 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.

More information about SG DevCo can be found at www.sgdevco.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. 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 and include statements regarding closing the sale of the St. Mary’s site by May 30, 2024, with the transaction potentially concluding as early as May 15th, the transaction yielding non-dilutive capital bolstering the Company's operational capabilities, the closing for the transaction taking place via the Company’s online real estate market platform, Xene Home revolutionizing the way real estate transactions are conducted, Xene Home ensuring a seamless experience for all parties involved, strengthening SG Devco’s position in the market, capitalizing on emerging opportunities, delivering exceptional experiences to the Company’s customers and partners while maintaining a strong and sustainable financial position and Xene Home 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. . Statements in this press release that are not strictly historical in nature are forward-looking statements. Actual events or results may differ materially from those projected in any of such statements due to various factors, including the Company’s ability to successfully complete the sale of the St. Mary’s property, the Company’s ability to monetize its real estate holdings, the Company’s ability to attract banks, institutions, home builders, clients, agents, vendors, gig workers, and insurers to join the Xene Home platform and the 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 Safe and Green Development Corporation undertakes no obligation to revise or update this press release to reflect events or circumstances after the date hereof.

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