Wed, Aug 14, 8:03 PM (153 days ago)
On August 12, 2024, Safe and Green Development Corporation (SGDC) announced a significant financing arrangement with Arena Investors through a Securities Purchase Agreement. SGDC plans to issue up to $10,277,777 in secured convertible debentures along with warrants for common stock. The initial tranche involved issuing $1,388,888.75 in debentures at a 10% original issue discount, with a closing price of $1,250,000. The debentures bear 0% interest and are convertible at a price based on the lower of $0.279 or 92.5% of the lowest daily VWAP over ten trading days prior to conversion. The company also established an "Equity Line of Credit" (ELOC) with Arena Global, allowing for the purchase of up to $50 million in common stock under specific conditions. The agreements include provisions for registration rights, legal fee reimbursements, and a security interest in SGDC's assets. The financing is expected to enhance SGDC's liquidity and operational flexibility, although it may dilute existing shareholders given the potential issuance of approximately 3.56 million shares upon conversion of the debentures.