Safe and Green Development Corporation Addresses Shareholders in Recent Letter

Safe and Green Development Corporation Addresses Shareholders

Safe and Green Development Corporation (NASDAQ: SGD), a prominent player in real estate development and innovation, has communicated directly with its shareholders through a recent letter from CEO David Villarreal. This correspondence aims to clarify the company’s strategic direction and reassure investors amid fluctuating stock prices and trading volumes.

Shareholder Concerns Addressed

The letter acknowledges the recent market activity surrounding SGD's stock. Villarreal emphasized that the company's operational plans and strategic objectives remain unchanged despite concerns raised by trading fluctuations. The management is committed to maintaining transparency and providing reassurance regarding the stability of the company's operations.

Acquisition Strategy Remains Strong

One significant topic in the letter was the ongoing acquisition of Resource Group US Holdings LLC, which continues on schedule. The acquisition is critical for SGD, as it is anticipated to enhance the company’s financial standing significantly. Resource Group has exhibited impressive growth, with revenues increasing from $16 million in 2023 to $19.1 million in 2024. Following the acquisition's completion, pro forma revenues are expected to reach around $25 million by 2025.

Villarreal asserted that this acquisition is pivotal for SGD, providing it with a robust market presence while diversifying its revenue streams. The CEO reiterated that the company remains focused on unlocking value through real estate development and proprietary technology while pursuing strategic acquisitions that generate both immediate cash flow and long-term shareholder value.

Emphasizing Market Value and Future Outlook

The letter also highlights a key concern: the current market capitalization of SGD does not seem to reflect the company's intrinsic value. This perception is especially apparent given the strategic initiatives underway and the promising revenue projections associated with the Resource Group acquisition.

Villarreal is optimistic, stating that the management team is focused on executing the business plan effectively. Their commitment to delivering tangible results to shareholders remains steadfast, illustrating their confidence in closing this transformative acquisition and positioning the company for success in the future.

Preparing for Proxy Statement Filing

As part of the upcoming transaction with Resource Group, SGD plans to file a proxy statement with the SEC. This will allow shareholders to vote on the approval for issuing shares of the company's restricted common stock as part of the deal. Notably, this transaction will result in the issuance of shares amounting to 49% of SGD’s outstanding common stock upon closing.

The CEO urged investors and shareholders to carefully review the forthcoming proxy statement and related documents for essential information pertaining to the proposed transaction. These documents will be made available for free through both the SEC’s website and SGD's company website.

Company Overview

Safe and Green Development Corporation was established in 2021, focusing on innovative real estate development via sustainable practices and prefabricated modules made from wood and steel. Its subsidiary, Majestic World Holdings LLC, is dedicated to prop-tech innovations, including an AI platform designed to enhance the real estate marketplace. Additionally, MyVONIA Innovations LLC, another subsidiary, offers an AI-powered personal assistant aimed at simplifying tasks and boosting productivity for users.

This letter from CEO David Villarreal marks a proactive approach to addressing shareholder concerns and laying out a visionary path for the company, reinforcing their intent to build a more robust and financially sound future for Safe and Green Development Corporation.