Safe and Green Development Corporation Announces Acquisition of Resource Group to Enhance Growth Potential

Strategic Shift: SGD Acquires Resource Group

Safe and Green Development Corporation (NASDAQ: SGD), a prominent player in real estate innovation, has officially announced a significant acquisition that aims to transform its operational framework. The company’s acquisition of Resource Group US Holdings LLC marks a pivotal moment in its strategic direction. This move not only highlights SGD's commitment to expanding its portfolio but also emphasizes its focus on integrating innovative technology into its operations.

In a letter addressed to shareholders, the company laid out its reasoning and strategic vision behind the acquisition of Resource Group. This company holds an exclusive license for cutting-edge technology in the composting and engineered soils sector. By harnessing this technology, SGD intends to optimize land redevelopment opportunities, setting the groundwork for future growth.

As the real estate industry evolves, the demand for innovative solutions has reached unprecedented levels. Resource Group’s advanced technology provides SGD with a robust competitive edge, allowing the company to lead in the composting and engineered soils markets. Additionally, the acquisition is contingent upon customary closing conditions that include the completion of an audit of Resource Group, which reflects the company’s diligence in ensuring a smooth transition.

The strategic acquisition aims to leverage Resource Group’s logistics business and integrate vertical operations, paving the way for additional growth opportunities through mergers and acquisitions. This not only enhances SGD’s market position but also solidifies its foundation in the soils industry, further empowering the company to expand its footprint.

A noteworthy aspect of Resource Group’s appeal is its impressive financial performance. The company reported an increase in revenues from $16 million in 2023 to $19.1 million in 2024. This trajectory indicates a promising outlook as SGD anticipates pro forma revenues of approximately $25 million by 2025, transforming the financial landscape of SGD. This solid growth makes a compelling case for the acquisition, showcasing Resource Group’s potential to significantly enhance SGD’s value.

Moreover, Resource Group’s business model benefits from scalability and replicability, presenting exciting possibilities for rapid expansion across multiple markets. With SGD eyeing the substantial $3.2 billion market in Florida alone, the acquisition is positioned to unlock tremendous value.

SGD's leadership reaffirms its commitment to creating value for shareholders through this acquisition. The shift towards focusing on Resource Group's core business is aligned with long-term strategic goals aimed at safeguarding and enhancing shareholder interests.

As part of the integration process, SGD plans to file with the SEC a proxy statement for approval on the proposed stock issuance related to this transaction, which will include shares of the Company’s restricted common stock. This process reflects the company’s transparent approach and dedication to maintaining open communication with stakeholders.

In conclusion, the acquisition of Resource Group brings substantial opportunities for SGD to elevate its business operations and create sustainable value. Despite the complexities involved, SGD remains focused on executing this acquisition seamlessly, ensuring that shareholders recognize the transformative potential it carries. The company expresses gratitude for the ongoing support from its shareholders as it embarks on this significant strategic adventure, setting the stage for a promising future in the evolving market landscape.