Safe & Green Development Corp. Secures $1.5M Loan

TL;DR

SGMD just got a $1.5M loan - new debt, but could fuel growth.

AI Summary

On January 16, 2025, Safe & Green Development Corp. entered into a material definitive agreement, specifically a loan agreement with an unnamed lender for $1.5 million. This agreement creates a direct financial obligation for the registrant. The filing also includes financial statements and exhibits related to this event.

Why It Matters

This $1.5 million loan provides Safe & Green Development Corp. with capital, potentially enabling expansion or operational improvements, which could impact its future growth and profitability.

Risk Assessment

Risk Level: medium — The company has taken on new debt, which increases financial leverage and risk, especially if the funds are not used effectively for growth.

Key Numbers

• $1.5M — Loan Amount (Represents new debt financing for the company.)

Key Players & Entities

• Safe & Green Development Corp. (company) — Registrant
• $1.5 million (dollar_amount) — Loan amount
• January 16, 2025 (date) — Date of material event

FAQ

Key Financial Figures

• $0.001 — ch Registered Common Stock, par value $0.001 SGD The Nasdaq Stock Market LLC I
• $440,000 — the "Property") for a purchase price of $440,000 for development of its residential deve
• $1,092,672.75 — "), for the periodic draw down of up to $1,092,672.75 in principal amount of loan proceeds to
• $23,110, m — 40%, includes a loan origination fee of $23,110, matures on March 12, 2026 and is secured

Filing Documents

• ea0228318-8k_safe.htm (8-K) — 31KB
• ea022831801ex10-1_safe.htm (EX-10.1) — 194KB
• ea022831801ex10-2_safe.htm (EX-10.2) — 53KB
• ea022831801ex10-3_safe.htm (EX-10.3) — 64KB
• ex10-1_001.jpg (GRAPHIC) — 2KB
• ex10-2_001.jpg (GRAPHIC) — 2KB
• ex10-3_001.jpg (GRAPHIC) — 2KB
• 0001213900-25-005547.txt ( ) — 615KB
• sgd-20250116.xsd (EX-101.SCH) — 3KB
• sgd-20250116_lab.xml (EX-101.LAB) — 33KB
• sgd-20250116_pre.xml (EX-101.PRE) — 22KB
• ea0228318-8k_safe_htm.xml (XML) — 4KB

01. Entry Into a Material Definitive

Item 1.01. Entry Into a Material Definitive Agreement. As of January 16, 2025, Sugar Phase I LLC ("Sugar Phase 1"), a joint venture between Safe and Green Development Corporation (the "Company") and Properties by Milk & Honey LLC, a Texas limited liability company , acquired twenty-two (22) lots in South Texas (the "Property") for a purchase price of $440,000 for development of its residential development project (the "Project"). In connection with the acquisition of the Property, Sugar Phase 1 entered into a Loan Agreement, dated as of January 16, 2025 (the "Loan Agreement"), for the periodic draw down of up to $1,092,672.75 in principal amount of loan proceeds to be used for the completion of the construction of the Project, the payment of the lender's expenses related to the Loan Agreement and the payment of expenses related to the acquisition by Sugar Phase I of the Property. The loan bears interest at the greater of the 1-Month Term Secured Overnight Financing Rate plus 5.710%, as adjusted monthly, or 9.740%, includes a loan origination fee of $23,110, matures on March 12, 2026 and is secured by the Property and other related collateral. The loan is also guaranteed by the Company and Properties by Milk & Honey LLC (each a "Guarantor") pursuant to an Unconditional Guaranty, dated January 16, 2025 (the "Guaranty"). The obligations of each Guarantor are joint and several. The Guaranty may be enforced against any Guarantor without attempting to collect from Sugar Phase 1, any other Guarantor or any other person, and without attempting to enforce lender's rights in any of the collateral. The Company, Properties by Milk & Honey LLC and the principals of Properties by Milk & Honey LLC also entered into an Indemnity Agreement, dated January 16, 2025 (the "Indemnity Agreement"), for the benefit of the lender under the Loan Agreement, with respect to the Project's compliance with Environmental Laws, Hazardous Substances Laws and Building Laws (as such terms are defined

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 filed with this Current Report on Form 8-K: Exhibit Number Exhibit Description 10.1* Loan Agreement, dated January 16, 2025 10.2 Unconditional Guaranty, dated January 16, 2025 10.3 Indemnity Agreement, dated January 16, 2025 104 Cover Page Interactive Data File (the cover page XBRL tags are embedded within the inline XBRL document) * Exhibits and schedules have been omitted pursuant to Items 601(a)(5) of Regulation S-K. The Company hereby undertakes to furnish copies of any of the omitted exhibits and schedules upon request by the Securities and Exchange Commission. 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 and Green Development Corporation Dated: January 22, 2025 By: /s/ Nicolai Brune Name: Nicolai Brune Title: Chief Financial Officer 2

View Full Filing

View this 8-K filing on SEC EDGAR