SAFE & GREEN HOLDINGS CORP. Takes on New Financial Obligation
Ticker: OLOX · Form: 8-K · Filed: Jan 31, 2024 · CIK: 1023994
Complexity: simple
Sentiment: neutral
Topics: debt, financial-obligation, material-agreement
TL;DR
**SGHC just took on new debt, watch for details on terms and impact.**
AI Summary
SAFE & GREEN HOLDINGS CORP. (SGHC) entered into a material definitive agreement on January 29, 2024, creating a direct financial obligation. This 8-K filing indicates the company is taking on new debt or a significant financial commitment. For investors, this matters because new obligations can impact the company's financial health, potentially affecting profitability and share value, especially if the terms are unfavorable or the company struggles to meet its commitments.
Why It Matters
This filing signals new debt or a significant financial commitment for SAFE & GREEN HOLDINGS CORP., which could impact its balance sheet and future earnings.
Risk Assessment
Risk Level: medium — The creation of a direct financial obligation introduces new risk, as the terms and size of the obligation are not yet disclosed, making its impact uncertain.
Analyst Insight
A smart investor would await further details on the terms, size, and purpose of the new financial obligation to assess its potential impact on SAFE & GREEN HOLDINGS CORP.'s financial health and future prospects before making any investment decisions.
Key Players & Entities
- SAFE & GREEN HOLDINGS CORP. (company) — the registrant filing the 8-K
- January 29, 2024 (date) — date of the earliest event reported
- 001-38037 (string) — Commission File Number for SAFE & GREEN HOLDINGS CORP.
Forward-Looking Statements
- SAFE & GREEN HOLDINGS CORP. will provide more details about the material definitive agreement and financial obligation in a subsequent filing or press release. (SAFE & GREEN HOLDINGS CORP.) — high confidence, target: 2024-02-29
FAQ
What was the earliest event reported in this 8-K filing?
The earliest event reported in this 8-K filing occurred on January 29, 2024.
What specific items are being reported in this 8-K filing?
This 8-K filing reports on 'Entry into a Material Definitive Agreement', 'Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant', and 'Financial Statements and Exhibits'.
What is the business address of SAFE & GREEN HOLDINGS CORP. as listed in the filing?
The business address of SAFE & GREEN HOLDINGS CORP. is 990 Biscayne Blvd. #501, Office 12, Miami, FL 33132.
What is the telephone number for SAFE & GREEN HOLDINGS CORP.?
The registrant's telephone number, including area code, is 646-240-4235.
Under which SEC Act is this 8-K filed?
This 8-K is filed under the 1934 Act.
Filing Stats: 657 words · 3 min read · ~2 pages · Grade level 10.7 · Accepted 2024-01-31 16:42:30
Key Financial Figures
- $0.01 — ch Registered Common Stock, par value $0.01 SGBX The Nasdaq Stock Market LLC
- $1,733,420 — which SG Building Blocks sold to Cedar $1,733,420 of its future receivables for a purchas
- $1,180,000 — ure receivables for a purchase price of $1,180,000, less underwriting fees and expenses pa
- $49,150 — greement, Cedar is expected to withdraw $49,150 a week directly from SG Building Blocks
Filing Documents
- ea192531-8k_safeandgreen.htm (8-K) — 28KB
- ea192531ex10-1_safeandgreen.htm (EX-10.1) — 159KB
- ex10-1_001.jpg (GRAPHIC) — 2KB
- 0001213900-24-008481.txt ( ) — 390KB
- sgbx-20240129.xsd (EX-101.SCH) — 3KB
- sgbx-20240129_lab.xml (EX-101.LAB) — 33KB
- sgbx-20240129_pre.xml (EX-101.PRE) — 22KB
- ea192531-8k_safeandgreen_htm.xml (XML) — 4KB
01. Entry into a Material Definitive
Item 1.01. Entry into a Material Definitive Agreement. On January 29, 2024, SG Building Blocks, Inc. ("SG Building Blocks"), a wholly owned subsidiary of Safe & Green Holdings Corp.(the "Company"), entered into a Cash Advance Agreement ("Cash Advance Agreement") with Cedar Advance LLC ("Cedar") pursuant to which SG Building Blocks sold to Cedar $1,733,420 of its future receivables for a purchase price of $1,180,000, less underwriting fees and expenses paid and the repayment of prior amounts due Cedar , for net funds provided of $ 215,575 . Pursuant to the Cash Advance Agreement, Cedar is expected to withdraw $49,150 a week directly from SG Building Blocks' bank account until the $1,733,420 due to Cedar under the Cash Advance Agreement is paid. In the event of a default (as defined in the Cash Advance Agreement), Cedar, among other remedies, can demand payment in full of all amounts remaining due under the Cash Advance Agreement. SG Building Blocks' obligations under the Cash Advance Agreement have been guaranteed by the Company's wholly-owned subsidiary, SG Echo, LLC. 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 entirety by reference.
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 Exhibit Number Exhibit Description 10.1 Standard Cash Advance Agreement, dated January 29, 2024, by and between SG Building Blocks, Inc. and Cedar Advance LLC 104 Cover Page Interactive Data File (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 31, 2024 By: /s/ Patricia Kaelin Name: Patricia Kaelin Title: Chief Financial Officer 2