SGB Development Corp. Site, Lago Vista, Under Contract at Full Asking Price
SG Blocks, Inc. (NASDAQ: SGBX) (“SG Blocks” or the “Company”), a leading developer, designer, and fabricator of modular structures, announced today that SGB Development Corp. (“SGB DevCorp”), a wholly-owned subsidiary of the company, has entered into contract for the sale of its Lago Vista property at full asking price to an unnamed buyer.
The 58-acre waterfront property located outside of 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 broker for the property.
The property was acquired in May of 2021. The contracted sale will generate the Company a significant return on its investment. Closing is expected to occur in the fourth quarter of 2022.
“We are excited to announce the contract for the sale of our Lago Vista property today,” Paul Galvin, Chairman and CEO of SG Blocks explained. “We intend to use the value we attain from this sale to continue to grow SG Blocks, while preventing any dilution to shareholders from future financings. As stated in our earnings call yesterday, we do not foresee a need to access the capital markets at this time, and our sale of Lago Vista only helps to bolster our balance sheet.”
Upon the closing of this sale, the Company’s total unit count within the pipeline will only decline by approximately 174 units. The Company foresees the cash inflow affording opportunities to continue to work through its record backlog of $750 million, which is left unchanged, as Lago Vista was not included in analysis given its listing for sale.
“We strive to be efficient allocators of capital as well as stewards of shareholder value and today’s announcement, as well as the share repurchase plan that is set to commence in two days, are further examples of our commitment to our shareholders,” Paul Galvin concluded.
About SG Blocks, Inc.
SG Blocks, Inc. is a leading developer, designer, and fabricator of modular structures, meeting the growing demand for safe and green construction. The firm offers a product that exceeds many standard building code requirements, and also supports developers, architects, builders and owners in achieving faster execution, greener construction, and buildings of higher value. The Company creates purpose built, pre-fabricated modules from wood, steel, and shipping containers into supreme structures. For more information, visit www.sgblocks.com.
Safe Harbor Statement
Certain statements in this press release constitute "forward-looking statements" within the meaning of the federal securities laws. Words such as "may," "might," "will," "should," "believe," "expect," "anticipate," "estimate," "continue," "predict," "forecast," "project," "plan," "intend" or similar expressions, or statements regarding intent, belief, or current expectations, are forward-looking statements. These forward-looking statements are based upon current estimates and assumptions and include statements regarding the sale of the Lago Vista property generating the Company a significant return on its investment, closing occurring in the fourth quarter of 2022, using the value attained from this sale to continue to grow SG Blocks while preventing any dilution to shareholders from future financings, the cash inflow affording opportunities to continue to work through the Company’s record backlog of $750 million and the share repurchase plan commencing in two days. While SG Blocks believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to us on the date of this release. These forward-looking statements are subject to various risks and uncertainties, many of which are difficult to predict that could cause actual results to differ materially from current expectations and assumptions from those set forth or implied by any forward-looking statements. Important factors that could cause actual results to differ materially from current expectations include, among others, the Company’s ability to close the Lago Vista sale as planned, the Company’s ability to use the value attained from the sale to continue to grow SG Blocks while preventing any dilution to shareholders from future financings, the Company’s ability to continue to work through the backlog of $750 million, the Company’s ability to commence its share repurchase plan as planned, the Company’s ability to expand within various verticals as planned, the Company’s ability to position itself for future profitability, the Company’s ability to maintain compliance with the NASDAQ listing requirements, and the other factors discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 and its subsequent filings with the SEC, including subsequent periodic reports on Forms 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 on account of new information, future events, or otherwise, except as required by law.
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