Safe & Green Holdings acquires majority stake in Winchester Oil

MIAMI - Safe & Green Holdings Corp. (NASDAQ: SGBX), a company specializing in modular construction, announced that its subsidiary Olenox Corp. has acquired a 51% interest in Winchester Oil and Gas, LLC. The Texas-based Winchester operates over 500 oil wells and has reported a production rate of approximately 50 barrels a day, with a peak of 200 barrels in the past four years.

Olenox, now the majority stakeholder, will manage the existing wells and is set to reactivate a significant portion, aiming to have 30-40% back in production by the second quarter of 2025. CEO Michael McLaren emphasized the acquisition showcases Olenox's capability to leverage patented technologies for down hole cleaning and stimulation, as well as service rigs that are designed to be more efficient and cost-effective. This efficiency focus comes at a crucial time, as InvestingPro analysis reveals the company faces significant debt challenges and a concerning cash burn rate. Get access to 15+ additional ProTips and comprehensive financial metrics with InvestingPro.

The company's Machfu technology, which facilitates bidirectional well monitoring, is expected to further reduce operational and energy costs, thus maintaining profitability even with fluctuating oil prices. McLaren expressed confidence in the strategic value of the investment and the anticipated positive impact on the company's production portfolio.

Olenox Corp. focuses on acquiring and revitalizing distressed energy assets, using proprietary technology to boost production while minimizing environmental impact. Safe & Green Holdings Corp. provides modular solutions across various industries, promoting faster construction and environmentally friendly practices.

This development is based on a press release statement from Safe & Green Holdings Corp., and the company has expressed its intent to provide updates on production as they occur. The acquisition aligns with Safe & Green's commitment to expanding its holdings and enhancing its operational capabilities within the energy sector.

In other recent news, Safe & Green Holdings Corp. has made several financial and strategic moves. The company reported a significant financial maneuver by securing a $100 million Equity Line of Credit (ELOC) with Tysadco Partners LLC, allowing it to sell new common stock shares, pending certain conditions. In addition, Safe & Green Holdings issued a promissory note to Tysadco Partners for up to $1,875,000, with a 12% annual interest rate, convertible into common stock. The company also entered into a financial agreement with GS Capital Partners, issuing a $360,000 promissory note with an annual interest rate of 15%, convertible into common stock under specific conditions.

Additionally, Safe & Green Holdings issued a $375,700 promissory note to Generating Alpha Ltd., with a 15% interest rate and specific conversion rights in case of default. In terms of compliance, the company announced its return to compliance with Nasdaq's minimum equity standard, confirmed by the Nasdaq Hearings Panel. This follows the completion of a merger with Olenox Corp., which bolstered the company's stockholders' equity by approximately $60 million, ensuring continued Nasdaq listing.

These recent developments reflect the company's strategic efforts to strengthen its financial position and maintain its Nasdaq listing.

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