Company will use net loan proceeds of $1,958,233 for development projects
SG Blocks, Inc. (NASDAQ: SGBX) (“SG Blocks” or the “Company”), a leading designer, innovator and fabricator of modular structures, announced today that SGB Development Corp., a subsidiary of SG Blocks, Inc. executed a real estate lien note in the principal amount for $2,000,000 on its 50+ acre Lago Vista project, located outside of the greater Austin, Texas area. The net loan proceeds, after fees, are $1,958,233, and will be used for growth capital for SGB Development Corp. projects.
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SGB Development Corp. Issues Real Estate Lien Note on Lago Vista Site. (Photo: Business Wire)
The Note has a term of one year and provides for payments of interest only at a rate of twelve percent annum and may be prepaid without penalty commencing nine months after its issuance date.
“We are happy to use the debt markets to leverage our investments and greater SGB Development Corp. projects,” Paul Galvin, Chairman and CEO of SG Blocks noted. “We remain very excited about the Lago Vista project and greater Austin community, and will continue to explore non-dilutive ways to increase growth capital within our SG Blocks ecosystem.”
The Company will provide further updates as the project site in Lago Vista advances.
About SG Blocks, Inc.
SG Blocks, Inc. is a premier innovator in advancing and promoting the use of code-engineered cargo shipping containers for safe and sustainable construction. The firm offers a product that exceeds many standard building code requirements, and also supports developers, architects, builders and owners in achieving greener construction, faster execution, and stronger buildings of higher value. Each project starts with GreenSteel™, the structural core and shell of an SG Blocks building, and then is customized to client specifications. For more information, visit www.sgblocks.com.
Safe Harbor Statement
Certain statements in this press release constitute "forward-looking statements" within the meaning of the federal securities laws. Words such as "may," "might," "will," "should," "believe," "expect," "anticipate," "estimate," "continue," "predict," "forecast," "project," "plan," "intend" or similar expressions, or statements regarding intent, belief, or current expectations, are forward-looking statements. These forward-looking statements are based upon current estimates and assumptions and include statements regarding plans to use the net loan proceeds from the loan for SGB Development Corp. projects and plans provide further updates as the project site in Lago Vista advances. While SG Blocks believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to us on the date of this release. These forward-looking statements are subject to various risks and uncertainties, many of which are difficult to predict that could cause actual results to differ materially from current expectations and assumptions from those set forth or implied by any forward-looking statements. Important factors that could cause actual results to differ materially from current expectations include, among others, the Company’s ability to develop its SGB Development Corp. projects as planned, the Company’s ability to position itself for future profitability, the Company’s ability to maintain compliance with the NASDAQ listing requirements, and the other factors discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 and its subsequent filings with the SEC, including subsequent periodic reports on Forms 10-Q and 8-K. The information in this release is provided only as of the date of this release, and we undertake no obligation to update any forward-looking statements contained in this release on account of new information, future events, or otherwise, except as required by law.