Durable Goods (Jun F) -9.4% vs 9.3% Prior, Ex-Trans 0.2% vs 0.2%
MIAMI - Safe and Green Development Corporation (NASDAQ: SGD), a real estate development and innovation firm, has informed shareholders that recent volatility in its stock price has not altered the company’s operational plans or strategic goals. The stock, which has experienced a 71.9% decline year-to-date and currently trades at $0.75, appears undervalued according to InvestingPro analysis. The stock has moved between $0.65 and $19.45 over the past 52 weeks, reflecting significant price swings that InvestingPro identifies as characteristic of the company’s trading pattern. In a letter to shareholders released today, CEO David Villarreal emphasized that despite market fluctuations, SGD’s acquisition of Resource Group US Holdings LLC is proceeding as planned, with the only remaining conditions being standard closing procedures and the completion of Resource Group’s audit.
Villarreal also reiterated the growth trajectory of Resource Group, citing unaudited revenue increases from $16 million in 2023 to $19.1 million in 2024, and projecting pro forma revenues of approximately $25 million for 2025 following the acquisition. The CEO expressed confidence that this move will significantly enhance SGD’s financial profile, expand its market presence, and diversify its revenue streams.
SGD’s focus remains on advancing its real estate development pipeline and proprietary technology platforms, alongside strategic acquisitions aimed at generating cash flow and increasing shareholder value. Villarreal stated that the company’s current market valuation does not reflect its intrinsic value, particularly in light of its strategic direction and the anticipated revenue from the Resource Group transaction. InvestingPro data reveals some financial challenges, with a weak overall Financial Health Score of 0.36 and a current ratio of 0.17, indicating potential liquidity concerns. Subscribers to InvestingPro can access 15 additional key insights about SGD’s financial position and market performance.
The management team at SGD is committed to executing the business plan and producing tangible results for its shareholders. The letter ended with an appreciation for the shareholders’ continued support as the company moves closer to finalizing the acquisition and strengthening SGD’s future.
This press release statement serves as the basis for the reported information. The proposed transaction between SGD and Resource Group will be subject to a proxy statement filed with the SEC for shareholder approval regarding the issuance of shares. Investors are encouraged to read the proxy statement and other relevant documents filed with the SEC once they become available, as they will contain important details about the proposed transaction.
SGD, established in 2021, specializes in developing environmentally friendly real estate projects using prefabricated modules. Its subsidiary Majestic World Holdings LLC operates a real estate AI platform, while another wholly-owned subsidiary, MyVONIA Innovations LLC, owns MyVONIA, an AI-powered personal assistant designed to enhance productivity. The company reported revenue of $0.21 million in the last twelve months, with a gross profit margin of 12%, highlighting its early-stage nature in the real estate development sector.
In other recent news, Safe and Green Development Corporation has announced a stock dividend where shareholders will receive 0.05 additional shares for each share owned, with the distribution set for April 22, 2025. The company is also moving forward with a strategic acquisition of Resource Group US Holdings LLC, a firm known for its composting technology. This acquisition, involving a cash payment and issuance of common stock, will result in Resource Group’s shareholders owning 49% of SGD’s outstanding stock. Safe and Green Development Corp has regained compliance with Nasdaq’s stockholders’ equity requirement, securing its listing on the Nasdaq Capital Market. Additionally, the company has successfully placed all homes from the first phase of its Sugar Joint Venture under contract, with closing expected by April 11, 2025. The recent developments reflect Safe and Green Development Corp’s efforts to expand its market presence and enhance shareholder value. Analyst firms have noted the potential for significant growth following the acquisition of Resource Group, projecting pro forma revenues of approximately $25 million in 2025. These strategic moves indicate a focus on leveraging innovative technologies and expanding into new markets.
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