Safe and Green Development Announces Strategic Plan to Unlock Shareholder Value Post-Acquisition

Rhea-AI Summary

Safe and Green Development Corporation (NASDAQ: SGD) has announced that its subsidiary, Resource Group, is expanding into high-value potting media and soil substrates production using advanced Microtec milling technology. The company plans to launch sustainable soil products under the 'Renewable Earth' brand, targeting a market where product pricing could reach $150 per ton - up to five times the value of traditional compost. The expansion leverages Resource's exclusive license for patented German-engineered Microtec systems, with installation expected in Q3. The strategy aims to transform woody and vegetative waste into premium sustainable products, reducing reliance on peat and imported coir while creating circular economic value. This initiative is part of SGD's broader strategy to integrate Resource's logistics and processing capabilities to build a scalable, environmentally responsible business model.

Positive

• Potential for higher margins with product pricing up to $150/ton, 5x traditional compost value
• Exclusive license for proven Microtec milling technology with 90+ global installations
• Expansion into premium sustainable soil products market through Renewable Earth brand
• Integration of existing logistics and processing capabilities for scalable business model

Negative

• Implementation and installation of new technology pending until Q3
• Success depends on effective market penetration and adoption of premium-priced products
• Significant capital investment likely required for technology implementation

Insights

Environmental Industry Analyst

SGD's subsidiary expanding into high-margin soil products using advanced milling technology could significantly boost profitability if execution succeeds.

This strategic pivot by SGD's Resource Group subsidiary represents a potentially meaningful value creation opportunity through vertical integration in the waste management sector. The company is leveraging exclusive access to German-engineered Microtec milling technology to transform its business model from basic compost production to manufacturing premium soil substrates under their "Renewable Earth™" brand.

The economics highlighted are particularly noteworthy - Resource is targeting markets where products can fetch approximately $150 per ton, representing a potential 5x price premium over traditional compost. This dramatic margin expansion opportunity stems from upcycling what was previously low-value green waste into engineered soil products that compete with environmentally problematic materials like peat and imported coir.

From an operational standpoint, Resource brings established logistics infrastructure and regional market knowledge, which should facilitate distribution capabilities. However, investors should recognize several execution challenges ahead: successful technology implementation (scheduled for Q3), product formulation expertise, quality control systems, and establishing brand recognition in competitive soil markets.

This transformation aligns with broader sustainability trends in agriculture and horticulture, where demand for peat alternatives is growing due to environmental concerns. If Resource can deliver consistent, high-performance products, the addressable market opportunity spans commercial agriculture, horticulture, and consumer retail channels - each with distinct margin profiles and volume potential.

While management's growth vision is clearly articulated, the press release contains minimal concrete financial projections or specific capacity figures that would enable precise modeling of the revenue potential.

MIAMI, June 11, 2025 /PRNewswire/ -- Safe and Green Development Corporation (NASDAQ: SGD) announces that its wholly owned subsidiary, Resource Group US Holdings LLC ("Resource") is expanding into being able to produce high-value potting media and soil substrates through the implementation of advanced milling technology.

By leveraging Resource's exclusive license to utilize cutting-edge Microtec milling technology, patented German-engineered systems with over 90 global installations, Resource expects to move beyond commodity compost and expand into higher-value markets. The company is introducing a suite of sustainable, potentially high-margin soil products under its "Renewable Earth™" brand. By converting woody and vegetative waste into finely milled potting media and substrates, Resource may be able to access a market where product pricing can reach approximately $150 per ton, potentially up to five times the value of traditional compost offerings. A preview of the expected Renewable Earth product packaging can be seen in the image accompanying this release. 

"This product represents a potential fundamental revaluation of organic waste as a resource," said Tony Cialone, CEO of Resource Group. "We're not just managing green waste we're engineering premium, sustainable products that reduce reliance on environmentally harmful peat and imported coir while creating circular economic value."

"As we integrate Resource's proven logistics, proprietary processing capabilities, and deep regional market knowledge, we intend to unlock a scalable, environmentally responsible business model with attractive margins and robust growth potential," said David Villarreal, CEO of Safe and Green Development Corporation. "We believe Resource is positioned to lead the next generation of sustainable soil solutions supporting the horticulture, agriculture, and consumer landscaping sectors with products designed for performance, sustainability, and impact,"

The Company expects to finalize the delivery and installation of the Microtec mill in the third quarter.

About Safe and Green Development Corporation

Safe and Green Development Corporation is a real estate development company. Formed in 2021, it focuses primarily on the direct acquisition and indirect investment in properties across the United States that are intended for future development into green single-family or multifamily housing projects. The Company wholly owns Resource Group US Holdings LLC, an environmental and logistics subsidiary operating a permitted 80+ acre organics processing facility in Florida. Resource processes source-separated green waste and is expanding into the production of sustainable, high-margin potting media and soil substrates through advanced milling technology. Its operations also include a logistics platform that provides transportation services across biomass, solid waste, and recyclable materials, supporting both in-house and third-party infrastructure needs. Additionally, Safe and Green Development Corporation wholly owns Majestic World Holdings LLC, a prop-tech company that has developed a real estate AI platform. This platform is integrated into the Company's broader strategy to enhance transaction efficiency and increase margins on home sales by facilitating services such as mortgage origination and down payment assistance.

Forward-Looking Statements

This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Exchange Act of 1934 as amended. All statements other than statements of historical fact are or may be deemed to be forward-looking statements. In some cases, forward-looking statements can be identified by terminology such as "may," "should," "potential," "continue," "expects," "anticipates," "intends," "plans," "believes," "estimates" and similar expressions and include statements regarding unlocking shareholder value post-acquisition, Resource expanding into being able to produce high-value potting media and soil substrates through the implementation of advanced milling technology, moving beyond commodity compost and expanding into higher-value markets, introducing a suite of sustainable, potentially high-margin soil products under the "Renewable Earth" brand, being able to access a market where product pricing can reach approximately $150 per ton potentially up to five times the value of traditional compost offerings. by converting woody and vegetative waste into finely milled potting media and substrates, the proposed Renewable Earth product packaging,  engineering premium, sustainable products that reduce reliance on environmentally harmful peat and imported coir while creating circular economic value, , integrating Resource's  logistics, proprietary processing capabilities, and deep regional market knowledge, unlocking a scalable, environmentally responsible business model with attractive margins and robust growth potential and Resource being positioned to lead the next generation of sustainable soil solutions supporting the horticulture, agriculture, and consumer landscaping sectors with products designed for performance, sustainability, and impact. These forward-looking statements are based on certain assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions, and expected future developments, as well as other factors we believe are appropriate in the circumstances. Important factors that could cause actual results to differ materially from current expectations include, among others, Resource's ability to transition into a producer of high-value potting media and soil substrates through the implementation of advanced milling technology, the Company's ability to create scalable opportunities for market expansion, licensing, and premium distribution across North America, the Company's ability to integrate Resource's  logistics, proprietary processing capabilities, and deep regional market knowledge and unlock a scalable, environmentally responsible business model with attractive margins and robust growth potential,  the Company's ability to generate revenue and create shareholder value,  the Company's ability to obtain the capital necessary to fund its activities, and other factors discussed in the Company's Annual Report on Form 10-K for the year ended December 31, 2024, and its subsequent filings with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement, and the Company undertakes no obligation to revise or update this press release to reflect events or circumstances after the date hereof.

For Media and IR inquiries please contact:
info@sgdevco.com

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SOURCE Safe and Green Development Corporation

FAQ

What is SGD's new strategic expansion plan for 2025?

SGD is expanding into high-value potting media and soil substrates production through its Resource Group subsidiary, using Microtec milling technology to launch premium sustainable soil products under the Renewable Earth brand.

How much higher are the potential prices for SGD's new soil products compared to traditional compost?

SGD's new products could reach approximately $150 per ton, which is up to five times the value of traditional compost offerings.

When will SGD implement the new Microtec milling technology?

The company expects to finalize the delivery and installation of the Microtec mill in the third quarter of 2025.

What is the Renewable Earth brand by SGD?

Renewable Earth is SGD's new brand for sustainable, high-margin soil products created through advanced milling technology, designed to reduce reliance on peat and imported coir.

How does SGD plan to create value from organic waste?

SGD plans to convert woody and vegetative waste into finely milled potting media and substrates using Microtec technology, transforming waste into premium sustainable products.