Safe & Green Holdings Faces Nasdaq Delisting

Published 16/05/2025, 22:30
Safe & Green Holdings Faces Nasdaq Delisting

Safe & Green Holdings Corp. (the "Company") has received a notification from The Nasdaq Stock Market LLC ("Nasdaq") on May 13, 2025, indicating that the Company’s securities are subject to delisting. The Nasdaq Listing Qualifications Department cited discretionary authority under Listing Rule 5101, expressing concerns about public interest following the Company’s substantial issuance of securities, specifically Series B warrants exercisable on a cashless basis, which resulted in significant shareholder dilution.

The Company, previously traded under the ticker SGBX on Nasdaq, plans to appeal the delisting decision before the May 20, 2025 deadline and will present a compliance plan at the upcoming Nasdaq Hearings Panel. In anticipation of a potential unfavorable outcome, Safe & Green Holdings intends to apply for trading on the OTCQB market, operated by OTC Markets Group Inc.

The notification from Nasdaq serves as a formal requirement for the Company to address the additional deficiency at the Panel hearing. The Company’s management has not provided any further comments on the potential impact of the delisting on its operations or financial condition. With a current market capitalization of just $3.05 million and an EBITDA of -$7.61 million in the last twelve months, the company faces significant financial challenges. InvestingPro subscribers have access to 15 additional key insights about the company’s financial health and market position.

This development follows the Company’s registration statement on Form S-1 filed on April 30, 2025, where risk factors and other uncertainties were outlined. The Company has made forward-looking statements regarding its intention to appeal the delisting and to apply for OTCQB trading, which are subject to various known and unknown risks and uncertainties.

The information in this article is based on a press release statement and reflects facts as reported in the Company’s SEC filing on May 16, 2025.

In other recent news, Safe & Green Holdings Corp. has secured $108 million in funding, including a $100 million Equity Line of Credit and an $8 million private placement, aimed at supporting its growth initiatives. The company has also announced a merger with New Asia Holdings, Inc., acquiring subsidiaries Olenox and Machfu, and the acquisition of County Line Industrial, LLC, a welding services provider. Additionally, Safe & Green Holdings has acquired a majority stake in Winchester Oil and Gas, LLC, which operates over 500 wells in Texas. These strategic moves align with the company’s focus on US energy production and sustainable technologies. The private placement, facilitated by D. Boral (OTC:BOALY) Capital, is expected to raise approximately $8 million, with proceeds allocated for working capital and equipment for expansion. CEO Michael McLaren highlighted the acquisition of County Line Industrial as a step to enhance revenue and profitability in the modular manufacturing segment. Olenox Corp., a subsidiary, will manage Winchester’s wells and plans to reactivate a portion by 2025, leveraging proprietary technologies to boost production. Safe & Green Holdings has regained compliance with Nasdaq’s minimum equity standard, ensuring its continued listing.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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