Dec 11, 2019, 09:37 EST
Salem, US, Dec 11, 2019, 09:37 /Comserve / -- SG Blocks, Inc. has been deriving its revenues primarily from construction and engineering contracts related to modules, has recently come out with a public offering of 15 million common shares which is priced at USD 0.15 per share.
SG Blocks, Inc., one of the leading companies listed on the NASDAQ exchange (NASDAQ: SGBX) has been involved in designing and fabrication of container based structures for the past several years. The Company that has been deriving its revenues primarily from construction and engineering contracts related to modules, has recently come out with a public offering of 15 million common shares which is priced at USD 0.15 per share. The offering is expected to rake in USD 2.25 million as gross proceeds for the Company. SG Blocks, Inc., (formerly known as CDSI Holdings, Inc.), a well-known name in the material building industry operating in the consumer services sector, was formed as a result of merger of CDSI Merger Sub, Inc., a Delaware Corporation (WOS) into the erstwhile SG Building Blocks, Inc. that is currently operating under the name SG Blocks, Inc. The Company has been operating as a leading designer, innovator and fabricator for container-based structures for the past several years and has been undertaking the work of fabrication of modules for constructing buildings using SG Blocks (modified cargo shipping containers) or (SGPBMs) being pre-fabricated steel modular units that are customized for use in modular construction in order to complement a SG Blocks™ structure.
The Company had earlier filed its Registration Statement during the year on 27th November and subsequently on 09th December with the U.S. Securities and Exchange Commission (SEC). The confirmation has also been obtained from SEC on 10th December declaring the filing to be effective. The underwriters are given the option of subscribing to another 2.15 million common shares with a 45 day window option provided to them. The net proceeds are planned to be used to retire old debts of the Company, that arose as a result of contractual obligations under a loan agreement that was outstanding and the balance funds are expected to be utilized towards general working capital purposes. The offer is expected to close on 13th December, 2019.
Last December, the Company had posted revenues of USD 8,190,712 as against revenues of USD 5,061,585 earned for the period ended 31st December, 2017, with major revenues primarily arising from entering into contracts with schools, retail, office and in the case of special use purposes that were still ongoing. However, during the first nine months in the year 2019, the revenues of the Company had taken a hit and had decreased to USD 2.6 million from USD 5.9 million earned during the first nine months of 2018, thereby registering a 55.4% decline in its revenues for the above period. Additionally, a gross profit margin of 23.8 percent totaling to USD 629,000 was recorded during the first nine months of 2019 as compared to only a gross profit margin of 7.1 percent amounting to USD 4,20,000 recorded during the same period.
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