Safe & Green Holdings Corp (NASDAQ:SGBX), a distributor of lumber and construction materials, announced on Monday the appointment of Jim Pendergast as the company's new Chief Operating Officer, effective January 16, 2025. The company, which has recently undergone a name change from SG Blocks , Inc., detailed the terms of Pendergast's employment in a recent SEC filing.
Pendergast brings a wealth of experience to his new role, with over 25 years in leadership positions across various sectors, including energy, construction, manufacturing, and agriculture. His background features significant roles such as CEO, CFO, and COO, with a track record in mergers and acquisitions, corporate restructuring, and managing financial operations.
This appointment comes at a crucial time, as InvestingPro analysis reveals the company is currently operating with a weak financial health score and faces challenges in cash flow management. InvestingPro subscribers have access to 15+ additional insights about SGBX's financial position and market performance.
Under the terms of the employment agreement, Pendergast will receive an annual base salary of $200,000, along with a restricted stock grant of 200,000 shares of Safe & Green Holdings Corp's common stock. These shares are set to vest quarterly over an 18-month period, contingent upon continuous service. Additionally, he is eligible for an annual performance bonus up to 20% of his base salary, payable in cash or equity at the discretion of the company's Board of Directors.
Pendergast's previous achievements include his tenure as COO at MGO Systems Ltd., where he was responsible for over 50 construction projects, and his role as CEO/CFO at Paramount Structures Inc., where he led the company through an acquisition and financial restructuring. As the CEO of FP Genetics Inc., he directed the company towards profitable growth. His experience also extends to Agrium Inc., where he managed business development projects and investor relations.
In other recent news, Safe & Green Holdings Corp. announced a binding Letter of Intent to acquire New Asia Holdings Inc., including its subsidiaries Olenox Corp. and Machfu.com. This move is expected to diversify the company's operations into energy and technology sectors. The acquisition will leverage Safe & Green's existing facilities to support new operations in the oil and gas industry.
Simultaneously, Safe & Green disclosed a significant financial agreement through its subsidiary, SG Building Blocks, selling $203,000 of its future receivables for an immediate cash purchase price of $140,000. This is part of the company's broader strategy to manage its capital and cash flows amidst a weak current ratio and significant debt burden.
In leadership changes, Michael McLaren has been appointed as the new CEO, bringing over 30 years of experience in the energy sector. This appointment is part of the company's ongoing efforts to strengthen its leadership amidst financial challenges.
The company also faces potential delisting from Nasdaq due to an equity shortfall and failure to meet the minimum bid price rule. Safe & Green has appealed these decisions to the Nasdaq's Hearing Panel.
Lastly, Safe & Green secured two new contracts for the creation of modular containers, marking a continued expansion of its project portfolio. These are the latest developments within the company.
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