Safe and Green Development Corporation increases sales price of St Mary's to $1.4M

Rhea-AI Summary

Safe and Green Development (NASDAQ: SGD) announced an update on the sale of its St Mary's property. The closing date has been extended to June 20, 2024, and the purchase price increased from $1,350,000 to $1,400,000. This adjusted price will be paid entirely in cash, removing the previously included $450,000 promissory note. The company expects these changes to streamline the closing process and result in higher immediate cash proceeds. SG DevCo is confident that these adjustments will benefit all parties involved.

Positive

• Purchase price increased by $50,000 to $1.4 million.
• Entire purchase price will be paid in cash, eliminating the $450,000 promissory note.
• Expected to streamline the closing process.
• Higher immediate cash proceeds for the company.

Negative

• Closing date extended, which may delay potential uses of the proceeds.

Insights

Financial Analyst

The increase in the sales price of the St Mary's property to 1.4M, along with the shift to an all-cash transaction, is a significant update for Safe and Green Development Corporation (SG DevCo). This development bolsters the company's liquidity position, which is important for further investments or addressing any immediate financial needs. The elimination of the 450,000 promissory note simplifies the transaction, reducing potential future liabilities and uncertainties. For retail investors, this change indicates improved short-term cash flow, which might be positively reflected in the next quarterly earnings report.

However, it's important to consider the broader context of SG DevCo's financial health. While this transaction is beneficial, investors should keep an eye on how these proceeds will be utilized. Strategic reinvestment or paying down existing debt could further strengthen the company's balance sheet.

Real Estate Market Analyst

From a real estate perspective, the increased price and the all-cash nature of the St Mary's sale signal a strong demand for the property. It suggests that the buyer is highly committed and sees significant value in the acquisition. This bodes well for SG DevCo's ability to negotiate favorable terms in its future transactions. Additionally, the extension to June 20, 2024, allows more time for due diligence, potentially reducing the risk of complications or delays at closing.

For investors, this deal demonstrates SG DevCo's capability to enhance its asset value, even in a fluctuating real estate market. It also reflects positively on the company's negotiation skills and its proactive approach to securing better terms.

MIAMI, Fla, May 21, 2024 (GLOBE NEWSWIRE) -- Safe and Green Development Corporation (NASDAQ: SGD) (“SG DevCo” or the “Company”) is providing an update on the planned sale of its St Mary’s property.

The parties have mutually agreed to extend the closing date of the sale to June 20, 2024.  In recognition of the additional time granted, SG DevCo has reached an agreement with the buyer to increase the purchase price from $1,350,000 to $1,400,000. In addition, the purchase price will be paid in cash on the closing date as the parties have agreed to eliminate the $450,000 promissory note that was part of the original deal. These changes will not only streamline the closing process but will also result in the Company realizing higher cash proceeds upon completion of the transaction.

The Company is confident that these adjustments will positively impact the transaction, enabling a mutually beneficial outcome for all parties involved.

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
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,  the adjustments positively impacting the transaction enabling a mutually beneficial outcome for all parties involved 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. 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 complete the sale of the St. Mary property as planned, , the Company’s ability to obtain the capital necessary to fund its activities, the Company’s ability to attract banks, institutions, home builders, clients, agents, vendors, gig workers, and insurers to join the Xene Home platform, the Company’s ability to monetize its real estate holdings 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.

For investor relations and media inquiries, please contact:
Barwicki Investor Relations
Andrew@Barwicki.com
516-662-9461

FAQ

What is the new purchase price of Safe and Green Development 's St Mary's property?

The new purchase price is $1,400,000.

When is the updated closing date for the sale of Safe and Green Development 's St Mary's property?

The closing date has been extended to June 20, 2024.

How will the purchase price for Safe and Green Development 's St Mary's property be paid?

The purchase price will be paid entirely in cash, eliminating the $450,000 promissory note.

What is the stock symbol for Safe and Green Development ?

The stock symbol is SGD.