JACKSONVILLE, Fla.–(BUSINESS WIRE)–SG Blocks, Inc. (NASDAQ: SGBX) (“SG Blocks” or the “Company”), a leading developer, designer and manufacturer of modular structures, today announced that its Board of Directors authorized a share buyback program for up to 500,000 shares. SG Blocks had 12.0 million common shares outstanding as of March 31, 2022. At the closing price of $1.58 per share on July 13, the buyback program is valued at $790,000.
The board also approved the sale and signing of a letter of intent for the company’s Lago Vista development site outside of Austin, Texas at the asking price. The 60-acre site was purchased less than two years ago.
Paul Galvin, Chairman and CEO of SG Blocks, said, “We are delighted to report the decisive action the Board of Directors has taken to support our common stock and strengthen our balance sheet in the current market environment. With the free cash flow generated by the Clarity test lab at LAX, the $13 million in cash on our balance sheet at the end of last quarter, and the gains we expect to realize upon closing the sale of Lago Vista, SG Blocks will have the money to fund the share buyback, support our common stock, and launch the five projects in its pipeline that are expected to launch over the next fifteen months. These projects include three additional American-made manufacturing facilities to support the construction of our growing residential unit portfolio, which currently totals over 4,200 units.
“This announcement also reflects the Board’s confidence in SG Blocks’ business prospects which we believe will enable us to report growing financial results and achieve the positive cash flow we have forecast for 2022,” concluded Mr. Galvin.
About SG Blocks, Inc.
SG Blocks, Inc. is a leading developer, designer and manufacturer of modular structures, meeting the growing demand for safe and environmentally friendly construction. The company offers a product that exceeds many standard building code requirements and also helps developers, architects, builders and owners achieve faster turnaround, greener construction and higher value buildings. The company creates purpose-built pre-engineered modules from wood, steel, and shipping containers into supreme structures. For more information, visit www.sgblocks.com.
Safe Harbor Statement
Certain statements contained in this press release constitute “forward-looking statements” within the meaning of the federal securities laws. Words such as “may”, “could”, “will”, “should”, “believe”, “expect”, “anticipate”, “estimate”, “continue”, “predict”, “plan” , “project”, “” These forward-looking statements are based on current estimates and assumptions and include statements regarding the gains to be realized upon the closing of the sale of Lago Vista, the availability of cash to fund the share repurchase, backed by the company’s common stock, all five projects in the pipeline are expected to launch within the next fifteen months, and deliver growing financial results and achieve the positive cash flow the company has forecast for 2022. that SG Blocks believes these forward-looking statements to be reasonable, undue reliance should not be placed on these forward-looking statements, which are based on information available to us as of the date of this release. ue. These forward-looking statements are subject to various risks and uncertainties, many of which are difficult to predict, which could cause actual results to differ materially from current expectations and assumptions than those set forth or implied by the forward-looking statements. Important factors that could cause actual results to differ materially from current expectations include, among others, the Company’s ability to complete the sale of Lago Vista, the Company’s ability to launch the five ongoing projects during over the next fifteen months, the Company’s ability to expand into various verticals as expected, the Company’s ability to position itself for future profitability, the Company’s ability to maintain compliance with NASDAQ listing requirements and the other factors discussed in the company’s annual report on Form 10-K for the fiscal 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 made only as of the date of this release, and we undertake no obligation to update any forward-looking statements contained in this release as a result of new information, future events or otherwise, except if required by law.