Workflow
Safe and Green Development Corporation Executes Agreement for Strategic Shift via Acquisition of Resource Group a Next-Generation Engineered Soils and Composting Company
SGDSG DevCo(SGD) Prnewswire·2025-02-26 14:00

Core Viewpoint - Safe and Green Development Corporation (SGD) has entered into a definitive agreement to acquire Resource Group US Holdings LLC (RSG) for a total consideration of 480,000incash,issuanceof19480,000 in cash, issuance of 19% shares of SGD Restricted Common Stock, and a Convertible Note, which is expected to enhance the company's financial profile and cash flow through RSG's waste-to-value composting business [1][2][3] Company Overview - Safe and Green Development Corporation focuses on real estate development and innovation, primarily acquiring and investing in properties for future green projects [7] - Resource Group specializes in organic recycling and compost technology, transforming organic waste into environmentally friendly soil and mulch products, thus supporting sustainable practices [3][4] Transaction Details - The acquisition will result in SGD issuing shares that will amount to 49% of its outstanding shares at closing, with the transaction expected to close in early Q2 2025, subject to customary conditions [1][2] - Index Investment Group will become a significant shareholder post-transaction, with Bjarne Borg joining the SGD Board of Directors, enhancing the company's shareholder base [5] Financial Implications - The acquisition is anticipated to significantly strengthen SGD's balance sheet and add substantial revenues, particularly from RSG's composting operations [2][3] - Resource Group has contracts with customers that represent an aggregate potential revenue of 10.7 million, alongside signed MOUs projecting additional revenues from various product categories [3][4] Market Context - The global compost-to-substrate market is valued at approximately 10billion,drivenbydemandfromhorticulturesectors,indicatingagrowingmarketopportunityforRSG′sservices[3]−IncreasingcorporatecommitmentstocarbonreductionandgreensolutionsareexpectedtoenhancemarketopportunitiesforcompanieslikeRSG[3][4]CompetitiveAdvantages−ResourceGroupholdsanexclusivelicenseforMicrotectechnology,valuedat10 billion, driven by demand from horticulture sectors, indicating a growing market opportunity for RSG's services [3] - Increasing corporate commitments to carbon reduction and green solutions are expected to enhance market opportunities for companies like RSG [3][4] Competitive Advantages - Resource Group holds an exclusive license for Microtec technology, valued at 10.5 million, which provides a competitive edge in cost efficiency and innovative production methods [3] - The company operates a permitted compost facility in Myakka City, FL, supported by a robust logistics infrastructure, enhancing operational efficiency [3][4]