Commercial mortgage secured based on increase in the appraised value of the facility to fund the purchase

Purchase showcases ability to leverage assets for non-dilutive funding

Safe & Green Holdings Corp. (NASDAQ: SGBX) (“Safe & Green Holdings” or the “Company”), a leading developer, designer, and fabricator of modular structures for residential, commercial, and point-of-care medicine, announced today that SG Echo LLC (“SG Echo”), a wholly owned subsidiary of the Company, has purchased the Waldron manufacturing facility in Durant, Oklahoma, which SG Echo has been leasing.

The Waldron manufacturing facility, which has been under lease since November 2021, came with an option to purchase the facility for $1 million. Subsequent to the original lease agreement, the Company funded approximately $2.5 million of upgrades to the facility. As a result, the facility was recently appraised for $5.2 million, which is approximately $1.7 million over the Company’s all-in investment. In turn, SG Echo, LLC secured a $1.75 million commercial mortgage on Waldron and a $1.5 million financing agreement which funded the purchase of the facility as well as provided it with additional working capital.

Paul Galvin, Chairman and CEO of Safe & Green Holdings, commented, "Upon announcing our 2022 fiscal year-end results, we underscored our conviction that we could leverage our assets to obtain non-dilutive debt financing for the Company. This approach would significantly lessen our reliance on the equity markets to finance the Company’s growth. The purchase of the Waldron facility, financed by securing a mortgage against it, further exemplifies the worth of our substantial and expanding asset base.”

“We are now set to begin production at Waldron, which is expected to create 55-65 new U.S. jobs when running at full capacity. With the additional 58,000 square feet of manufacturing space and the addition of a new manufacturing line, this facility has the potential to reach up to $25 million in additional annualized revenue for SG Echo within the next 12 months. We anticipate that Moliving will be the Company’s first client within the Waldron campus. To further support SG Echo's growth, we will continue investing in new capacity, with a third manufacturing campus in Durant, Oklahoma, planned to come online later in 2023. Our experience in Oklahoma has been terrific and we look forward to continuing to build our presence here."

About Safe & Green Holdings Corp.

Safe & Green Holdings Corp., a leading modular solutions company, operates under core capabilities which include the development, design, and fabrication of modular structures, meeting the demand for safe and green solutions across various industries. The firm supports third party and in-house developers, architects, builders, and owners in achieving faster execution, greener construction, and buildings of higher value. The Company’s subsidiary, Safe and Green Development Corporation, is a leading real estate development company. Formed in 2021, it focuses on the development of sites using purpose built, prefabricated modules built from both wood and steel, sourced from one of Safe & Green Holdings’ factories and operated by the SG Echo subsidiary. For more information, visit www.safeandgreenholdings.com and follow us at @SGHcorp on Twitter.

Safe Harbor Statement

Certain statements in this press release constitute "forward-looking statements" within the meaning of the federal securities laws. Words such as "may," "might," "will," "should," "believe," "expect," "anticipate," "estimate," "continue," "predict," "forecast," "project," "plan," "intend" or similar expressions, or statements regarding intent, belief, or current expectations, are forward-looking statements. These forward-looking statements are based upon current estimates and assumptions and include statements regarding being set to begin production at Waldron, creating 55-65 new U.S. jobs when running at full capacity, the additional 58,000 square feet of manufacturing space and the addition of a new manufacturing line the facility having the potential to reach up to $25 million in additional annualized revenue for SG Echo within the next 12 months, Moliving being the Company’s first client within the Waldron campus, continuing to invest in new capacity, a third manufacturing campus in Durant, Oklahoma coming online later in 2023 and the Company continuing to build its presence in Oklahoma. . While SG Blocks believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to us on the date of this release. These forward-looking statements are subject to various risks and uncertainties, many of which are difficult to predict that could cause actual results to differ materially from current expectations and assumptions from those set forth or implied by any forward-looking statements. Important factors that could cause actual results to differ materially from current expectations include, among others, the Company’s ability to begin production at Waldron as planned, the Company’s ability to reach up to $25 million in additional annualized revenue for SG Echo, the Company’s ability to continue to invest in new capacity, the Company’s ability to bring a third manufacturing campus in Durant, Oklahoma online later in 2023, the Company’s ability to spin out Safe and Green Development Corporation, the Company’s ability to expand within various verticals as planned, the Company’s ability to position itself for future profitability, the Company’s ability to maintain compliance with the NASDAQ listing requirements, and the other factors discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 and its subsequent filings with the SEC, including subsequent periodic reports on Forms 10-Q and 8-K. The information in this release is provided only as of the date of this release, and we undertake no obligation to update any forward-looking statements contained in this release on account of new information, future events, or otherwise, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230612070122/en/