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Safe and Green Development Corporation Secures $9 Million in PIPE Financing

Strategic Insights

— 1 min read

Safe and Green Development Corporation, a real estate development and environmental solutions company, has announced a private investment in public equity (PIPE) financing for approximately $9.0 million. The company will sell an aggregate of 360,000 shares of its Series B Non-Voting Convertible Preferred Stock convertible at $1.36 per share into 6,617,647 shares of common stock and common warrants exercisable at $1.36 per share. The PIPE financing will be used to accelerate operational expansion at the company's Resource Group site in Myakka City, Florida, and to reduce certain debt obligations and support strategic investments and acquisitions.

Key Takeaways:

  • Safe and Green Development Corporation has entered into a securities purchase agreement for a private investment in public equity (PIPE) financing for approximately $9.0 million.
  • The company will sell an aggregate of 360,000 shares of Series B Non-Voting Convertible Preferred Stock, convertible at $1.36 per share into 6,617,647 shares of common stock and common warrants exercisable at $1.36 per share.
  • Dawson James acted as the sole placement agent for the PIPE financing.
  • The company plans to use a portion of the net proceeds to accelerate operational expansion at its Resource Group site in Myakka City, Florida, and to reduce certain debt obligations and support strategic investments and acquisitions.
  • The Preferred Stock and Warrants have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration with the SEC or an applicable exemption from such registration requirements.
  • Resource Group US Holdings LLC, an environmental and logistics subsidiary of the company, operates a permitted 80+ acre organics processing facility in Florida.
  • The company has filed a Current Report on Form 8-K with the SEC in connection with the offering.

Statistics:

  • $9,000,000 in gross proceeds from the PIPE financing
  • 360,000 shares of Series B Non-Voting Convertible Preferred Stock sold
  • 6,617,647 shares of common stock issuable upon conversion of Preferred Stock
  • 6,617,647 common warrants exercisable at $1.36 per share
  • Net proceeds from the PIPE financing to be used to accelerate operational expansion at Resource Group site in Myakka City, Florida (note: exact amount not specified)

Sources:

  • GlobeNewswire
  • Securities and Exchange Commission (SEC) Form 8-K
  • Safe and Green Development Corporation's press release (exact source not provided in original material)

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