Safe & Green Development Corporation (NASDAQ:SGD), a Delaware-incorporated real estate firm, has amended the terms of its deal to acquire Majestic World Holdings LLC (MWH), as per a recent SEC filing. The revision, effective Monday (NASDAQ:MNDY), involves changes to the consideration mix and payment schedule for the acquisition originally agreed on February 7, 2024.
Under the new terms, Safe & Green will provide 500,000 of its restricted common shares and $154,675 in cash as total consideration for MWH’s membership interests. This adjustment comes following a 1-for-20 reverse stock split executed by the company in October 2024. The stock portion was distributed on the initial closing date, while the cash payment terms have been modified. For amounts under $5,000, full payment was made by October 30, 2024.
For larger sums, half was paid by the same date, with the balance due by December 1, 2024. An exception applies to MWH member Vikash Jain, who is set to receive $60,000 in monthly installments over a year.
The transaction’s completion will see Safe & Green take over 68.25% of MWH’s membership interests that were transferred earlier this year, with the remaining 31.75% to be transferred on December 1, 2024. Additionally, on the same date, MWH’s outstanding promissory notes totaling $337,226.29, owed to Akwasi Oppong, Vikash Jain, and Matthew Barstow, will be cancelled and considered paid in full.
This filing confirms the company’s strategic move to expand its holdings and adjust its financial commitments amid the acquisition process. The information is based on a press release statement and provides a factual account of Safe & Green Development Corporation's recent business activities.
In other recent news, Safe and Green Development Corporation (SG Devco) has reported significant advancements in its operations. The company has initiated construction on its Sugar Phase I project in South Texas, which includes five single-family homes. SG Devco has also completed site work for its Sugar Phase I project in South Texas, with a total of 35 homes expected to be delivered by the first quarter of 2025.
In a significant financial development, SG Devco has secured a preliminary purchase commitment from Trio for Choctaw American Insurance, Inc., which could potentially generate approximately $2.8 million in revenue. The company has also declared a 1-for-20 reverse stock split to comply with Nasdaq's minimum bid price requirement and has successfully met this requirement.
In strategic moves, SG Devco has established a joint venture with Milk & Honey LLC for a storage unit facility in Texas and plans to acquire 22 single-family lots in Edinburg, Texas. On the technology front, the company has announced plans to acquire MyVONIA, an AI assistant platform, and has launched its Xene Home Platform, an AI-powered real estate transaction tool. These recent developments reflect SG Devco's ongoing efforts to expand its operations and enhance its technological capabilities.
InvestingPro Insights
Safe & Green Development Corporation's recent acquisition of Majestic World Holdings LLC comes at a time when the company faces significant financial challenges. According to InvestingPro data, SGD's revenue for the last twelve months as of Q2 2024 was only $0.09 million, with an operating income of -$5.21 million, indicating substantial losses.
InvestingPro Tips highlight that SGD operates with a significant debt burden and may have trouble making interest payments. This context adds importance to the revised payment terms in the MWH acquisition, particularly the extended payment schedule for larger amounts and the cancellation of promissory notes.
The company's stock performance has been notably poor, with InvestingPro data showing a 71.92% price decline over the past six months and an 87.71% drop year-to-date. This aligns with the InvestingPro Tip suggesting that SGD's stock has fared poorly over the last month and has taken a big hit over the last six months.
For investors seeking a more comprehensive analysis, InvestingPro offers 15 additional tips for SGD, providing deeper insights into the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.