Asset monetization and non-dilutive financing support Company’s growth initiatives

Safe & Green Holdings Corp. (NASDAQ: SGBX) (“Safe & Green Holdings” or the “Company”), a leading developer, designer, and fabricator of modular structures for residential, commercial, and point-of-care medicine, today provided an update on the planned sale of its Lago Vista property, as well as the pending purchase and refinancing of its Waldron production facility.

The Lago Vista property auction is slated to end on June 7, 2023, with the closing of the transaction expected approximately a month later. The site, initially acquired for about $3.5 million, is expected to be sold for a substantially higher sum than the purchase price. The Company is also planning to acquire its Waldron manufacturing facility in the coming weeks. This facility has been under lease since November 2021 and came with an option to purchase the facility for $1 million. Subsequent to the original lease agreement, the Company has funded approximately $2.5 million of upgrades to the facility. As a result, the facility was recently appraised for $5.2 million, which is approximately $1.7 million over the Company’s all-in costs. The Company plans to secure a commercial mortgage on the facility, which would fund the purchase and provide the Company additional working capital. Additionally, the Company secured $475 thousand in net proceeds of non-dilutive funding through a cash advance agreement. It is anticipated that these transactions will furnish the Company with significant non-dilutive financing intended to further accelerate the Company’s growth trajectory.

“When we reported our 2022 year-end results, we expressed our conviction that our assets could be monetized at attractive returns and/or leveraged to obtain low-cost debt funding for the Company, substantially reducing our dependence on the equity markets to fund our growth initiatives,” stated Paul Galvin, the Chairman and CEO of Safe & Green. “These transactions illustrate the strength of our asset base and ability to secure non-dilutive funding. The cash advance agreement fortifies our operating reserves and strengthens our balance sheet as we move closer to the completion of the Lago Vista and Waldron transactions. Furthermore, we can leverage our valuable assets for similar, non-dilutive financing down the road, if and when needed.”

About Safe & Green Holdings Corp.

Safe & Green Holdings Corp., a leading modular solutions company, operates under core capabilities which include the development, design, and fabrication of modular structures, meeting the demand for safe and green solutions across various industries. The firm supports third party and in-house developers, architects, builders, and owners in achieving faster execution, greener construction, and buildings of higher value. Safe and Green Development Corporation is a leading real estate development company. Formed in 2021, the company focuses on the development of sites using purpose built, prefabricated modules built from both wood & steel, sourced from one of Safe & Green Holdings factories and operated by SG Echo. For more information, visit www.safeandgreenholdings.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 the Lago Vista property auction ending on June 7, 2023, the closing of the Lago Vista property sale being expected approximately a month after the closing of the auction, selling the Lago Vista property for a substantially higher sum than the purchase price, acquiring the Company’s Waldron manufacturing facility in the coming weeks, securing a commercial mortgage on the Waldron facility, furnishing the Company with significant non-dilutive financing to further accelerate the Company’s growth trajectory and leveraging the Company’s assets for similar, non-dilutive financing down the road, if and when needed. While the Company 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 sell the Lago Vista property as planned, the Company’s ability to acquire the Waldron manufacturing facility in the coming weeks, the Company’s ability to secure a commercial mortgage on the Waldron facility, the Company’s ability to leverage its assets for similar, non-dilutive financing down the road, if and when needed, , the Company’s ability to spin out Safe and Green Development Corporation as planned, the Company’s ability to expand within its various verticals, 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, 2022 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.

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