JACKSONVILLE, Fla.–(Business Wire)–SG Blocks, Inc. (NASDAQ: SGBX) (“SG Blocks” or the “Company”), a leading developer, designer and manufacturer of modular structures, announced today that SGB Development Corporation (“SGB DevCorp”). , the company’s wholly-owned subsidiary, has entered into an agreement to sell its Lago Vista property to an unnamed buyer for full asking price.
The 58-acre waterfront property, located outside the greater Austin area on Lake Travis on the Colorado River, was listed for sale in April of this year, with Douglas Elliman, Inc., a premier real estate company, acting as the property’s broker.
The property was acquired in May 2021. The sale of the contract gives the company a significant return on its investment. Closing is expected to occur in the fourth quarter of 2022.
“We are excited to announce today the agreement for the sale of our Lago Vista property,” explained SG Blocks President and CEO Paul Galvin. “While preventing any dilution to shareholders from future financing, we intend to use the value we receive from this sale to continue growing SG Blocks. As stated in our earnings call yesterday, we do not anticipate the need to access the capital markets at this time and our sale of Lago Vista will help strengthen our balance sheet.
After the closing of this sale, the company’s total number of units in the pipeline will decrease to only approximately 174 units. The company expects cash flow opportunities to work through its record backlog of $750 million, which remains unchanged, as Lago Vista was not included in the analysis given its sales list.
“We strive to be an efficient allocator of capital and shareholder value and today’s announcement, as well as the share repurchase plan that will begin in two days, are further examples of our commitment to our shareholders,” concluded Paul Galvin. .
About SG Blocks, Inc
SG Blocks, Inc. A leading developer, designer and manufacturer of modular structures, catering to the growing demand for safe and green construction. The firm offers a product that exceeds many standard building code requirements and supports developers, architects, builders and owners to achieve faster execution, greener construction and higher value buildings. The company creates purpose-built, pre-fabricated modules from wood, steel and shipping containers into superstructures. For more information, visit www.sgblocks.com.
Safe Harbor Statement
Certain statements in this press release constitute “forward-looking statements” within the meaning of federal securities laws. Words such as “may,” “may,” “will,” “should,” “believe,” “expect,” “anticipate,” “estimate,” “continue,” “estimate,” “forecast,” “plan,” “”plan,” “intend” or similar expressions or statements relating to intent, belief or current expectations are forward-looking statements. These forward-looking statements are based on current estimates and assumptions and include statements regarding the sale of the Lago Vista property that the Company will generate a significant return on its investment, Using the proceeds from this sale to close in the fourth quarter of 2022. Continue to grow SG Blocks while preventing any dilution to shareholders from future financing, cash inflow opportunities to work through the company’s record $750 million backlog, and a share repurchase plan starting in two days. SG Blocks believes these forward-looking statements are reasonable. Any such forward-looking statement is based on information available to us as of the date of this release Undue reliance should not be placed on the provisions. These forward-looking statements are subject to various risks and uncertainties, many of which are difficult to predict and could cause actual results to differ materially from current expectations and assumptions implied by any forward-looking statements. Key factors that could cause actual results to differ from current expectations include, among others, the Company’s ability to close the Lago Vista sale as planned, the Company’s ability to utilize the value received from the sale to continue to grow the SG Blocks. Dilution to stockholders from future financing, the Company’s ability to continue operating through a $750 million backlog, the Company’s ability to initiate its share repurchase program as planned, the Company’s ability to expand into various verticals as planned, the Company’s ability for future profitability, the Company’s ability to maintain compliance with NASDAQ listing requirements, and the Company’s ability to maintain compliance with NASDAQ listing requirements as of December 31, 2021. Other matters discussed in the Company’s annual report on Form 10-K for the year and its subsequent filings with the SEC, including periodic reports on Form 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 except as new information, future events or as required by law.