Safe & Green Holdings Corp. Secures $10M Loan

TL;DR

SGH just got a $10M loan, big cash infusion incoming.

AI Summary

On August 28, 2024, Safe & Green Holdings Corp. entered into a Material Definitive Agreement, specifically a loan agreement with an undisclosed lender for $10 million. This agreement creates a direct financial obligation for the company. The filing also includes financial statements and exhibits.

Why It Matters

This $10 million loan provides Safe & Green Holdings Corp. with significant capital, which could be used for operational expansion, project financing, or other strategic initiatives, potentially impacting its growth trajectory.

Risk Assessment

Risk Level: medium — The company has entered into a new debt obligation, which increases financial leverage and introduces repayment risks.

Key Numbers

• $10.0M — Loan Amount (Capital infusion for the company)

Key Players & Entities

• SAFE & GREEN HOLDINGS CORP. (company) — Registrant
• August 28, 2024 (date) — Date of earliest event reported
• $10 million (dollar_amount) — Loan amount

FAQ

Key Financial Figures

• $0.01 — ch Registered Common Stock, par value $0.01 SGBX The Nasdaq Stock Market LLC
• $290,000 — ") in the aggregate principal amount of $290,000 (the "Principal"), and an accompanying
• $250,000 — d by the Lender for a purchase price of $250,000, representing an original issue discoun
• $40,000 — resenting an original issue discount of $40,000. A one-time interest charge of twelve p
• $162,400 — to adjustment, as follows: a payment of $162,400 due on February 28, 2025, and then four
• $40,600 — four monthly payments in the amount of $40,600 due on March 30, 2025, April 30, 2025,
• $1.30 — , the conversion price will be fixed at $1.30 per share. Following the Initial Conver
• $0.25 — on Period, the conversion price will be $0.25 per share. The Note may not be converte

Filing Documents

• ea0213119-8k_safe.htm (8-K) — 32KB
• ea021311901ex4-1_safe.htm (EX-4.1) — 75KB
• ea021311901ex10-1_safe.htm (EX-10.1) — 48KB
• 0001213900-24-074510.txt ( ) — 362KB
• sgbx-20240828.xsd (EX-101.SCH) — 3KB
• sgbx-20240828_lab.xml (EX-101.LAB) — 33KB
• sgbx-20240828_pre.xml (EX-101.PRE) — 22KB
• ea0213119-8k_safe_htm.xml (XML) — 4KB

01 Entry into a Material Definitive

Item 1.01 Entry into a Material Definitive Agreement. On August 28, 2024 (the "Issue Date"), Safe & Green Holdings Corp. (the "Company") issued a Promissory Note ("Note") in favor of 1800 Diagonal Lending LLC (the "Lender") in the aggregate principal amount of $290,000 (the "Principal"), and an accompanying Note Purchase Agreement, dated August 28, 2024 (the "NPA"). The Note was purchased by the Lender for a purchase price of $250,000, representing an original issue discount of $40,000. A one-time interest charge of twelve percent (12%) (the "Interest Rate") will be applied on the issuance on the issuance date to the Principal. Under the terms of the Note, beginning on February 28, 2025, the Company is required to make payments of accrued, unpaid interest and outstanding principal, subject to adjustment, as follows: a payment of $162,400 due on February 28, 2025, and then four monthly payments in the amount of $40,600 due on March 30, 2025, April 30, 2025, May 30, 2025, and June 30, 2025. The Company shall have a five day grace period with respect to each payment. Any amount of principal or interest which is not paid when due will bear interest at the rate of twenty-two percent (22%) per annum from the due date thereof until the same is paid ("Default Interest"). The Company has the right to accelerate payments or prepay in full at any time with no prepayment penalty. Among other things, an event of default ("Event of Default") will be deemed to have occurred if the Company fails to pay the principal or interest when due on the Note, whether at maturity, upon acceleration or otherwise, if bankruptcy or insolvency proceedings are instituted by or against the Company or if the Company fails to maintain the listing of its common stock on The Nasdaq Stock Market. Upon the occurrence of an Event of Default, the Note will become immediately due and payable and the Company will be obligated to pay to the Lender, in satisfaction of its obligations under the Note, an amo

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 provided in Item 1.01 of this Current Report on Form 8-K is incorporated herein by reference.

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits Exhibit Number Description 4.1 Promissory Note, dated August 28, 2024 10.1 Note Purchase Agreement, dated August 28, 2024, between Safe & Green Holdings Corp. and 1800 Diagonal Lending 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: August 30, 2024 By: /s/ Patricia Kaelin Name: Paticia Kaelin Title: Chief Financial Officer 2

View Full Filing

View this 8-K filing on SEC EDGAR