SGD’s $19M Pivot + Tiny Float = Big OpportunitySafe and Green Development Corporation (NASDAQ: SGD), a real estate development and innovation company, has released a letter to Shareholders regarding its decision to acquire 100% of the equity interests in Resource Group US Holdings LLC.
Key takeaways...
* Transformational Acquisition: Cash-flowing business expected to generate $19.1 million in 2024, with $25 million projected in 2025 revenue.
• Strategic Pivot: Expanding into the high-demand engineered soils industry, enhancing land redevelopment opportunities.
• Strong Asset Backing: Land holdings valued at $50 million, plus $6.575 million in Texas land under contract.
• Single-Family Development Success: South Texas homes already under contract, showcasing rapid demand and execution.
• Sustainable & Scalable: Cutting-edge prefabricated modules (wood & steel) built internally—built for speed, cost savings, and environmental efficiency.
• Market Dynamics: With a tight public float, growing short interest, and rising borrow costs, SGD is increasingly positioned for a potential short squeeze — a setup that’s attracted significant investor attention in other high-growth small caps.
“Dear Shareholders,
We wanted to provide you with insight into our decision to move forward with the acquisition of Resource Group US Holdings LLC and the strategic reasoning behind this pivotal move. Resource Group, as you may already be aware, is a company that holds an exclusive license to a cutting-edge technology, which grants it a significant competitive advantage in the composting and engineered soils industry.
Our decision to acquire Resource Group represents a calculated shift in our business model, as we intend to leverage our expertise in real estate development by utilizing Resource Group’s technology to redevelop forthcoming land opportunities. However, going forward, the primary focus of our company will be on Resource Group’s core business, capitalizing on the opportunities it presents for our growth initiatives.
One of the key factors that made Resource Group an attractive acquisition target is its vertical integration and ownership of a logistics business. This opens up additional avenues for growth through mergers and acquisitions as well as our current soils industry opportunities expanding our market presence and enhancing our competitive edge.
Resource Group’s remarkable performance in recent years is another compelling factor that influenced our decision. They have demonstrated substantial growth, increasing their revenues from $16 million (unaudited) in 2023 to an impressive $19.1 million (unaudited) in 2024. Through the completion of this acquisition, we anticipate pro forma revenues of approximately $25 million in 2025. Such growth prospects are indicative of Resource Group’s potential to change the financial profile of SGD significantly.
Moreover, the scalability and replicability of Resource Group’s business model offer an exciting opportunity for rapid expansion in multiple markets and industry sectors. As we set our sights on addressing a sizable $3.2 billion market in Florida alone, the potential for unlocking substantial value becomes truly evident.
We firmly believe that this acquisition will create tremendous value for our shareholders. It is unfortunate that the market has not fully recognized the transformative potential and effect this deal will have on our company and the value it will generate for our esteemed shareholders.
In conclusion, we are confident that the acquisition of Resource Group aligns perfectly with our long-term strategic goals and our commitment to our protecting our shareholders interest. By leveraging their exclusive technology and capitalizing on their core business, we anticipate the creation of sustainable value for SGD and its shareholders. We remain committed to executing this acquisition seamlessly and delivering strong financial performance in the years to come.
Thank you for your continued support.”
