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MIAMI - Safe & Green Holdings Corp. (NASDAQ: SGBX), a company specializing in the design and fabrication of modular structures, has priced a private placement expected to raise approximately $8 million. The offering includes 20,408,160 units, with each unit comprising a share of common stock or a pre-funded warrant, along with Series A and Series B warrants to purchase additional shares.
Each Common Unit is priced at $0.392, while Pre-Funded Units are priced at $0.3919 after accounting for the warrant exercise price. The Pre-Funded Warrants are immediately exercisable and will remain so until fully exercised. The sale of Pre-Funded Units will correspondingly reduce the number of Common Units available.
The Series A Warrants have an initial exercise price of $0.784 per share and are exercisable upon stockholder approval, expiring five years later. Adjustments to the number of securities issuable under these warrants are detailed in the Company’s upcoming Current Report on Form 8-K. Similarly, Series B Warrants are set at an initial exercise price of $0.98 per share, with a cashless exercise option, and will expire 30 months post stockholder approval.
The private placement is anticipated to close today, subject to customary closing conditions. Safe & Green Holdings intends to use the net proceeds for working capital, general corporate purposes, and equipment for expansion.
D. Boral Capital is serving as the exclusive placement agent, while Sichenzia Ross Ference Carmel LLP and Lucosky Brookman LLP are providing legal counsel to the Company and the placement agent, respectively.
The securities offered have not been registered under the Securities Act of 1933 and are available only to accredited investors. In compliance with a registration rights agreement, Safe & Green Holdings will file with the SEC to register the resale of the common stock and shares issuable upon the exercise of the warrants.
This press release is for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy any securities. The offering was not made to the general public and was exempt from the registration requirements of the Securities Act.
Safe & Green Holdings, recognized for its modular solutions, supports a range of industries with faster construction, greener practices, and enhanced building value. This news is based on a press release statement.
In other recent news, Safe & Green Holdings Corp. has announced several strategic developments that are likely to impact its future operations. The company has acquired assets and business operations from County Line Industrial, LLC, an Oklahoma-based provider of welding services. This acquisition is expected to enhance Safe & Green’s reach in the ready-mix cement and oil and gas sectors, potentially increasing revenue and improving profitability for its modular manufacturing segment. Additionally, Safe & Green’s subsidiary, Olenox Corp., has acquired a 51% interest in Winchester Oil and Gas, LLC, which operates over 500 oil wells in Texas. Olenox plans to reactivate a significant portion of these wells, aiming to have 30-40% back in production by the second quarter of 2025.
In a separate financial maneuver, Safe & Green Holdings has secured a $100 million Equity Line of Credit agreement with Tysadco Partners LLC. This agreement allows the company to sell new common stock shares, providing flexible access to capital. Furthermore, Safe & Green issued a promissory note valued at $375,700 to Generating Alpha Ltd., carrying an interest rate of 15% per annum. These financial arrangements are designed to offer the company additional funding options while adhering to Nasdaq regulations. These recent developments reflect Safe & Green’s ongoing efforts to expand its footprint in the energy sector and enhance its operational capabilities.
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