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Strategic Acquisition by Safe and Green Development Corporation

On February 26, 2025, Safe and Green Development Corporation (NASDAQ: SGD), a forward-thinking real estate development entity, revealed that it is entering a new phase of growth through the acquisition of Resource Group US Holdings LLC (RSG). This next-generation company specializes in engineered soils and composting, representing a key strategic shift for SGD aimed at creating a sustainable business model while enhancing shareholder value.

Acquisition Details

The total value of the acquisition is set at $480,000 in cash, alongside the issuance of 19% shares of SGD's Restricted Common Stock at the time of closing. An additional Convertible Note will also be part of the deal, specifically designed to convert into shares following shareholder approval. The transaction is projected to close in early Q2 2025, pending necessary audits and customary conditions.

With this move, SGD is set to strengthen its financial position by introducing significant cash flow derived from RSG's innovative waste-to-value composting operations. SGD's Board has unanimously approved the acquisition after extensive due diligence to ensure fairness and compliance with regulations.

A Message from the CEO

In a statement concerning the acquisition, CEO David Villarreal emphasized the dedication of SGD to maximizing shareholder value and the strategic importance of this acquisition. He noted the potential it has for transforming the financial structure of the company, alongside leveraging Resource Group's proprietary technologies to drive green solutions in the marketplace. Villarreal expressed excitement about collaborating with RSG to scale operations effectively and enhance cash flow.

About Resource Group

Resource Group is recognized for its expertise in transforming organic waste into efficient soil products, thereby eliminating the need for harmful fertilizers. Operating out of Myakka City, Florida, RSG's comprehensive approach includes the collection and disposal of green waste through environmentally friendly practices. Their use of proprietary Microtec technology enhances production while reducing costs, positioning RSG as a leader in sustainable composting.

Market Insights

The global market for compost-to-substrate is reaching approximately $10 billion, driven mainly by the horticulture industry. This is a timely entrance for SGD, which now aligns with growing demands for sustainable agricultural inputs. RSG holds valuable intellectual property with an exclusive license for Microtec technology in North America, appraised at $10.5 million, further reiterating its value in this acquisition.

Strategic Growth and Future Potential

The acquisition is expected to broaden SGD's market reach, especially as corporate responsibility commitments toward carbon reduction and sustainability rise. Given the current upward trend in input costs, including record-high potting media prices, RSG's cost-effective and innovative solutions position it favorably within the green economy.

Contracts valued at $10.7 million from RSG's logistics subsidiary demonstrate a solid foundation for incoming revenue, while the company benefits from a robust operational structure supported by a fleet of transportation vehicles.

The integration of Resource Group into SGD heralds a pivotal shift not only for the companies involved but also for the landscaping and green waste management sectors as they look to respond to environmental challenges proactively.

Conclusion

This strategic acquisition exemplifies Safe and Green Development Corporation's commitment to enhancing its business model with sustainable solutions, positioning it as an influential player in the green technology sector. As both entities move forward, the collaborative potential of SGD and Resource Group is poised to yield significant economic and environmental benefits, ultimately leading to a healthier planet.

As CEO Villarreal succinctly stated, the goal is clear: to redefine success in both financial terms and ecological impact, creating substantial value for shareholders and stakeholders alike as they pave the way for a greener future.