Safe & Green Holdings subsidiary enters agreement to purchase Texas property

Published 01/10/2025, 14:54
Safe & Green Holdings subsidiary enters agreement to purchase Texas property

Safe & Green Holdings Corp. (NASDAQ:SGBX) disclosed Wednesday that its wholly owned subsidiary, Olenox Corp, has entered into a purchase agreement to acquire real property in Conroe, Texas. The transaction was detailed in a press release statement based on a recent SEC filing.

According to the filing, Olenox will purchase the property located at 1207 N FM 3083 Rd, which includes both office and warehouse space, from Charles E Webb Jr Family Partnership LTD for a total price of $3,000,000. The purchase is contingent on Olenox securing a third-party loan of $2,400,000, with a term of at least 20 years, an initial interest rate not exceeding 8.000%, and payments based on an amortization period of no less than 20 years. This new debt commitment comes as InvestingPro data shows the company already carries $12.51 in total debt and faces challenges with cash burn.

Under the terms of the agreement, Olenox took occupancy of the property on Thursday. The company has the option to extend the closing of the transaction for up to 24 months. During the interim period before the purchase is finalized, Olenox has executed a commercial lease with the seller. Under this lease, $4,000 of monthly lease payments will be credited toward the purchase price at closing.

Olenox is required to deposit $30,000 as earnest money within three days of the agreement’s effective date. Additionally, the company must pay a $20,000 security deposit under the lease, which may be applied to any amounts owed by Olenox. The agreement also stipulates that Olenox must maintain commercial general liability insurance with a minimum coverage of $2,000,000, naming the seller as an additional insured party.

The information is based on a press release statement and details contained in Safe & Green Holdings Corp.’s SEC filing.

In other recent news, Safe & Green Holdings Corp. has finalized a settlement agreement through its subsidiary, SG Blocks, with EDI International and PVE, resolving all pending litigation and appeals. The settlement, reached on September 11, requires EDI/PVE to pay an undisclosed amount to SG Blocks, after which all legal matters will be dismissed. Additionally, Safe & Green has entered into a collaboration with technology company OneQode to enhance infrastructure and operational efficiency. This partnership aims to integrate OneQode’s technology with Safe & Green’s expertise in infrastructure and automation.

Furthermore, the company’s Olenox Energy subsidiary has reported strong oil production milestones in Texas, producing over 3,000 barrels and selling more than 2,500 barrels so far. Olenox is on track for a record production month, achieving peak rates of 55 barrels per day. Safe & Green has also received an extension from Nasdaq to meet compliance requirements, with the company needing to complete a reverse stock split by September 22, 2025. The extension allows additional time to maintain a minimum bid price of at least $1.00 per share for ten consecutive trading sessions.

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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