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Safe & Green Holdings Corp. (NASDAQ:SGBX), a wholesale distributor of lumber and construction materials, announced on Monday a significant financial maneuver with the closure of an Equity Line of Credit (ELOC) Securities Purchase Agreement. The deal, effective as of February 25, 2025, was sealed with Tysadco Partners LLC, providing Safe & Green with the option to sell up to $100 million of new common stock shares to the purchaser.
The agreement stipulates that the company may commence sales of common stock to Tysadco Partners only after meeting certain conditions, including the effectiveness of a registration statement and the filing of the final prospectus with the SEC. The company maintains control over the timing and volume of any stock sales, which will be influenced by market conditions and corporate funding strategies.
The purchase price for the shares will be set at 90% of the lowest traded price of the common stock during the five business days preceding the closing date. However, Safe & Green is restricted from issuing more than 4.99% of its outstanding common stock immediately prior to the agreement unless shareholder approval is obtained. Additionally, the agreement aligns with NASDAQ regulations, preventing any issuance that would breach exchange rules.
Simultaneously, Safe & Green has issued a promissory note to Tysadco Partners with a principal amount of up to $1,875,000, bearing a 12% annual interest rate, convertible into common stock at a price of $0.50 per share. This note, which is part of a Securities Purchase Agreement, will mature on November 30, 2025. The company also issued 294,000 common stock shares as additional consideration for the note purchase.
The company has committed to filing a registration statement for the resale of the maximum number of shares permissible by law within five business days following the date of the ELOC Purchase Agreement. It aims to have this statement declared effective within 120 days of the agreement date.
This strategic financial move is designed to provide Safe & Green Holdings with flexible access to capital, as it can dictate the sale of shares based on its needs and market conditions. The information in this article is based on a press release statement.
In other recent news, Safe & Green Holdings Corp. has announced several significant developments. The company has secured a $360,000 promissory note through a financial agreement with GS Capital Partners (WA:CPAP), LLC. This agreement includes a Securities Purchase Agreement and a Registration Rights Agreement, with a conversion option for GS Capital Partners to convert the note into common stock under specific conditions. Additionally, Safe & Green Holdings has regained compliance with Nasdaq’s minimum equity standard, ensuring its continued listing on the Nasdaq Capital Market. The company achieved this through a merger with Olenox Corp., which bolstered its stockholders’ equity by approximately $60 million. Safe & Green Holdings has also expressed its intention to acquire County Line Industrial, LLC, aiming to integrate its operational expertise to enhance profitability and streamline supply chains. Furthermore, the company issued another $360,000 promissory note to Firstfire Global Opportunities Fund, LLC, with specific terms for conversion and restrictions on company actions. These recent developments reflect Safe & Green Holdings’ strategic efforts to strengthen its financial position and operational capabilities.
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