Safe & Green Holdings Corp. Executes Promissory Note with 1800 Diagonal Lending LLC

On October 22, 2024, Safe & Green Holdings Corp. (NASDAQ:SGBX) entered into a significant financial agreement by executing a Promissory Note (“Note”) with 1800 Diagonal Lending LLC. The Principal amount involved in the agreement is $174,000, with the Lender purchasing the Note at a price of $150,000, reflecting an original discount of $24,000. The Interest Rate on the Note is set at twelve percent (12%) and will be applied from the issuance date to the Principal.

As per the terms outlined in the agreement, Safe & Green Holdings Corp. is obligated to make nine monthly payments starting from November 15, 2024, with each payment comprising accrued interest and outstanding principal totaling $21,653.34. The company is granted a five-business day grace period for each payment. In case of delayed payments, a Default Interest rate of twenty-two percent (22%) per annum will be applicable.

Failure to honor the payment obligations, potential insolvency proceedings, or a delisting of common stock from The Nasdaq Stock Market may trigger an Event of Default, prompting immediate payment of outstanding amounts with added interest by Safe & Green Holdings Corp. The Lender, post-Event of Default, reserves the right to convert the outstanding principal into shares of the company’s common stock.

During the Initial Conversion Period of one hundred eighty (180) days following the Issue Date, the conversion price is set at $1.30 per share, which later reduces to $0.25 per share. However, any conversion that could result in the Lender and its affiliates owning more than 4.99% of the company’s outstanding shares is restricted. Shareholder approval is required for any issuance exceeding 19.9% of the outstanding shares, subject to certain limitations.

Furthermore, the company is restrained from selling or disposing of a significant portion of its assets without written consent from the Lender. Conditions may be set regarding the application of proceeds from any asset disposition. The legal obligations under the Note and associated Note Purchase Agreement have been detailed in Exhibits 4.1 and 10.1 of the filed Form 8-K.

The financial transaction has been categorized under Item 1.01 of a Material Definitive Agreement in the SEC Form 8-K filing. The relevant information from this filing has also been incorporated into Item 2.03, which addresses the creation of a direct financial obligation by the registrant. Additionally, Exhibit 9.01 provides further details along with the Promissory Note and Note Purchase Agreement.

Investors and stakeholders keen on tracking Safe & Green Holdings Corp.’s financial undertakings will be closely monitoring the developments arising from this recent agreement as the company navigates its financial commitments with 1800 Diagonal Lending LLC.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Safe & Green’s 8K filing here.

Safe & Green Company Profile

Safe & Green Holdings Corp. designs and modifies code-engineered cargo shipping containers and purpose-built modules for commercial, industrial, and residential building construction in the United States. It redesigns, repurposes, and convert heavy-gauge steel cargo shipping containers into Safe & Green, which are green building blocks for construction.