Safe & Green Holdings CEO Provides Letter to Shareholders

Safe & Green Holdings’ Modular Manufacturing Facility

MIAMI, Jan. 03, 2024 (GLOBE NEWSWIRE) -- 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 the following letter to stockholders from Paul Galvin, the Company’s Chairperson and CEO:

Dear Stockholders,

We are pleased to share with you the significant milestones and exciting developments that Safe & Green Holdings accomplished in 2023 as well as take a look at what we believe is a very promising future for the Company in 2024.

2023 Highlights:

• Completed the spin-off of the Company’s real estate development subsidiary, Safe and Green Development Corporation (NASDAQ: SGD)
• Collaboration with Earth Our Common Home (ECHo) to launch the ECHo Impact Investment Fund for Africa
• Entered into a Master Purchase Agreement with Safe and Green Development Corporation for manufacturing projects initially valued in excess of $140 million
• Achieved record growth in manufacturing sales pipeline
• SGD entered into a contribution agreement to form a Joint Venture to develop the Lago Vista property
• SG Echo awarded a multi-million-dollar contract to supply additional modular units to a long-standing private infrastructure solutions client
• Selected by the Tunnel to Towers Foundation to construct a traveling modular home, the Comfort Home Show model, designed to showcase the foundation’s Homeless Veteran Program
• Partnered with Impact Housing to construct 3 modular Comfort Homes for the Foundation in Houston, Texas
• Announced launch of CORNERSTONE Charitable Foundation and plans to construct a schoolhouse in Cape Coast, Ghana, as part of the Ghana’s Tomorrow Project
• Obtained a certificate of occupancy for the SG Echo at Waldron facility
• Planned McLean manufacturing facility now in the design phase
• Identified reduction of over $2.5 million in annualized expenses expected to be realized in 2024

As you can see from the list of highlights above, 2023 was a busy and exciting year for Safe & Green Holdings, including the spin-off of Safe and Green Development Corporation. (SG DevCo) into a separate, publicly traded entity, which involved more than a year of dedicated effort and hard work from the Safe & Green team. With a robust construction pipeline exceeding $800 million and record growth, we have expanded our manufacturing capabilities to meet the increasing demand. We entered into a Master Purchase Agreement (MPA) with SG DevCo to produce modular units, anticipating over $140 million in manufacturing revenue. The significance of the MPA lies in its potential to escalate our factory utilization rate close to 100%, subject to adequate financing. Furthermore, our Waldron Manufacturing site received its certificate of occupancy, enhancing our production capabilities. The Company now operates two factories, with a third, the McLean manufacturing facility in the design phase and a fourth in the planning phase. Upon completion, these facilities are poised to offer the Company more than 360,000 square feet of manufacturing space within the U.S., bolstering domestic employment. Given this projected growth, as well as the scalability of our manufacturing operations, and cost reductions to focus on our most profitable operations, we expect our cash flow will continue to improve throughout the balance of the year and beyond.