SGHC Inks Material Agreement, Takes on New Financial Obligation

TL;DR

**SGHC just took on new debt or a major financial commitment, watch for details.**

AI Summary

SAFE & GREEN HOLDINGS CORP. (SGHC) filed an 8-K on January 10, 2024, reporting a material definitive agreement and the creation of a direct financial obligation on January 5, 2024. This filing indicates the company has entered into a new financial arrangement, which could impact its balance sheet and future financial flexibility. Investors should understand that new financial obligations can affect a company's debt levels and its ability to fund operations or growth, potentially influencing stock valuation.

Why It Matters

This filing signals a new financial commitment for SAFE & GREEN HOLDINGS CORP., which could alter its financial health and risk profile, directly impacting shareholder value.

Risk Assessment

Risk Level: medium — The filing indicates a new financial obligation without specifying the amount or terms, creating uncertainty about its impact on the company's financial stability.

Analyst Insight

Investors should monitor future filings (like 10-K or 10-Q) or press releases for SAFE & GREEN HOLDINGS CORP. to get specific details on the material agreement and financial obligation, as these details will determine the actual impact on the company's financial health and stock.

Key Players & Entities

• SAFE & GREEN HOLDINGS CORP. (company) — the registrant filing the 8-K
• January 5, 2024 (date) — date of the earliest event reported
• January 10, 2024 (date) — date the 8-K was filed
• 001-38037 (string) — Commission File Number for SAFE & GREEN HOLDINGS CORP.

FAQ

Key Financial Figures

• $0.01 — ch Registered Common Stock, par value $0.01 SGBX The Nasdaq Stock Market LLC
• $300,000 — t to which the Merchants sold to Maison $300,000 of their future receivables for a purch
• $200,000 — ure receivables for a purchase price of $200,000, less underwriting fees and expenses pa
• $190,000 — xpenses paid, for net funds provided of $190,000. Pursuant to the Cash Advance Agreemen
• $12,500 — reement, Maison is expected to withdraw $12,500 a week directly from the Merchants' ban

Filing Documents

• ea191424-8k_safeandgreen.htm (8-K) — 30KB
• ea191424ex10-1_safeandgreen.htm (EX-10.1) — 195KB
• 0001213900-24-002461.txt ( ) — 462KB
• sgbx-20240105.xsd (EX-101.SCH) — 3KB
• sgbx-20240105_def.xml (EX-101.DEF) — 26KB
• sgbx-20240105_lab.xml (EX-101.LAB) — 33KB
• sgbx-20240105_pre.xml (EX-101.PRE) — 22KB
• ea191424-8k_safeandgreen_htm.xml (XML) — 3KB

01. Entry into a Material Definitive

Item 1.01. Entry into a Material Definitive Agreement. On January 5, 2024, SG Building Blocks, Inc. ("SG Building Blocks"), a wholly owned subsidiary of Safe & Green Holdings Corp.(the "Company"), and the Company's wholly owned subsidiary, SG Echo, LLC ("SG Echo", and together with SG Building Blocks, the "Merchants"), entered into a Cash Advance Agreement ("Cash Advance Agreement") with Maison Capital Group ("Maison") pursuant to which the Merchants sold to Maison $300,000 of their future receivables for a purchase price of $200,000, less underwriting fees and expenses paid, for net funds provided of $190,000. Pursuant to the Cash Advance Agreement, Maison is expected to withdraw $12,500 a week directly from the Merchants' bank account until the $300,000 due to Maison under the Cash Advance Agreement is paid. In the event of a default (as defined in the Cash Advance Agreement), Maison, among other remedies, can demand payment in full of all amounts remaining due under the Cash Advance Agreement. The Merchants' obligations under the Cash Advance Agreement are secured by a security interest in all accounts, including without limitation, all deposit accounts, accounts-receivable, and other receivables, chattel paper, documents, equipment, general intangibles, instruments, and inventory, as those terms are defined by Article 9 of the Uniform Commercial Code, now or hereafter owned or acquired by any of them. In addition, SG Building Blocks' obligations under the Cash Advance Agreement have been guaranteed by SG Echo, and SG Echo's obligations under the Cash Advance Agreement have been guaranteed by SG Building Blocks. The amounts outstanding under the Cash Advance Agreement may be prepaid by the Merchants at any time without penalty. The foregoing description of the Cash Advance Agreement is qualified in its entirety by reference to the full text of the Cash Advance Agreement, a copy of which is attached hereto as Exhibit 10.1 and incorporated herein in its entiret

03 Creation of a Direct Financial Obligation

Item 2.03 Creation of a Direct Financial Obligation or an Obligation Under an Off-balance Sheet Arrangement of a Registrant. The information set forth under Item 1.01 above of this Current Report on Form 8-K is incorporated by reference in this Item 2.03.

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits. (d) Exhibits The following exhibits are furnished with this Current Report on Form 8-K: Exhibit Number Exhibit Description 10.1 Standard Merchant Cash Advance Agreement, dated January 5, 2024, by and among SG Building Blocks, Inc., SG Echo, LLC and Maison Advance LLC 104 Cover Page Interactive Data File (the cover page XBRL tags are embedded within the inline XBRL document) 1

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. SAFE & GREEN HOLDINGS CORP. Dated: January 10, 2024 By: /s/ Patricia Kaelin Name: Patricia Kaelin Title: Chief Financial Officer 2

View Full Filing

View this 8-K filing on SEC EDGAR