MIAMI – Safe & Green Holdings Corp. (NASDAQ: SGBX), a modular structures company, has announced a binding Letter of Intent (LOI) to acquire New Asia Holdings Inc. (OTCQB: NAHD), along with its subsidiaries Olenox Corp. and Machfu.com. The transaction is expected to diversify Safe & Green’s operations into the energy and technology sectors, with a focus on sustainable and efficient energy production and IoT innovations.
Olenox Corp., a diversified energy company, operates three business units that include Oil & Gas Production, Energy Services, and Energy Technologies. The company has been recognized for its ability to revitalize underdeveloped energy assets using proprietary technologies to increase production while reducing environmental impact. Its achievements include boosting production from 113 barrels of oil equivalent per day to a projected 700 BOE/day.
Machfu.com, specializing in secure connectivity and automation solutions, has established itself in the Industrial IoT sector. Its products facilitate the integration of legacy systems with modern IoT platforms, leading to significant operational efficiencies in various industries.
The acquisition is expected to leverage Safe & Green’s existing facilities, such as the Waldron facility in Oklahoma, to support the new operations in the oil and gas industry. This strategic move aims to achieve greater operational efficiencies and economies of scale across business segments.
Michael McLaren, recently appointed CEO of Safe & Green and founder and CEO of Olenox, will also take on the role of Chairman of Safe & Green, succeeding Paul Galvin. McLaren’s experience in energy production and sustainability is anticipated to drive the company’s expanded vision forward.
Galvin, who will remain on the board, expressed confidence that the transaction will deliver significant value for shareholders and strengthen the company’s financial position. He also highlighted the potential for the combined entity to become a leader in innovative, sustainable solutions.
The press release statement did not disclose the financial terms of the acquisition or the expected date of completion. The information is based on the press release statement, and the transaction’s successful completion is subject to customary closing conditions and regulatory approvals. While SGBX has shown strong momentum with a 21.52% year-to-date return, InvestingPro data indicates the company operates with a concerning current ratio of 0.15, suggesting potential liquidity challenges ahead.
In other recent news, Safe & Green Holdings Corp. announced significant changes in its leadership and financial strategies. Michael McLaren, an experienced energy sector professional and patent holder in green technologies, has been appointed as the new CEO, replacing Paul Galvin. McLaren’s appointment is part of the company’s ongoing efforts to strengthen its leadership amidst challenges including rapid cash burn and a revenue decline of 68%.
The company also disclosed a significant financial agreement through its subsidiary, SG Building Blocks, Inc. with Cedar Advance LLC. Under this arrangement, SG Building Blocks sold $203,000 of its future receivables for an immediate cash purchase price of $140,000. This move is part of the company’s broader strategy to manage its capital and cash flows amidst a weak current ratio and significant debt burden.
Simultaneously, Safe & Green Holdings faces potential delisting from Nasdaq due to an equity shortfall and failure to meet the minimum bid price rule. The company has appealed these decisions to the Nasdaq’s Hearing Panel.
On a positive note, Safe & Green Holdings recently secured two new contracts for the creation of modular containers, marking a continued expansion of its project portfolio. These developments, coupled with McLaren’s appointment, underscore the company’s commitment to navigating its current challenges and driving growth in the modular construction industry.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
