MIAMI – Safe & Green Holdings Corp. (NASDAQ: SGBX ), a modular structures company, 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 business into the energy and technology sector, with a focus on sustainable and efficient energy production and IoT innovation.
Olenox Corp., a diversified energy company, operates three business units that include oil and gas production, energy services and energy technologies. The company is recognized for its ability to revitalize underdeveloped energy assets by using proprietary technologies to increase production while reducing environmental impact. His achievements include increasing 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 across industries.
The acquisition is expected to leverage Safe & Green’s existing facilities, such as the Waldron facility in Oklahoma, to support new operations in the oil and gas industry. This strategic move aims to achieve greater operational efficiency and economies of scale in all 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 expected to drive the company’s expanded vision going forward.
Galvin, who will remain on the board, expressed confidence that the transaction will deliver significant shareholder value 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 did not disclose the financial terms of the acquisition or the expected completion date. The information is based on a press release, and the successful completion of the transaction is subject to customary closing conditions and regulatory approvals. Although SGBX has shown strong momentum with a year-to-date return of 21.52%, InvestingPro The data shows that the company is operating with a worrying current ratio of 0.15, indicating potential liquidity challenges going forward.
In other recent news, Safe & Green Holdings Corp . announced significant changes in its leadership and financial strategies. Michael McLaren, an experienced expert in the energy sector 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 amid challenges including a rapid cash burn and a 68% drop in revenue.
The company also disclosed a significant financing agreement through its subsidiary, SG Building Blocks, Inc. with Cedar Advance LLC. Under this agreement, SG Building Blocks sold $203,000 of its future receivables at a current cash purchase price of $140,000. The move is part of the company’s broader strategy to manage capital and cash flow amid a weak current ratio and significant debt.
At the same time, Safe & Green Holdings faces a potential delisting from the Nasdaq stock market due to lack of capital and failure to meet minimum bid price rules. The company appealed these decisions to the Nasdaq Hearing Committee.
On the positive side, Safe & Green Holdings recently secured two new contracts for the construction of modular tanks, marking the continued expansion of its portfolio of projects. These developments, together with McLaren’s appointment, underline the company’s commitment to meet the current challenges and drive growth in the modular construction industry.
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