Mr. Jeffrey Ciachurski reports

GREENBRIAR EXECUTES MEMORANDUM OF UNDERSTANDING WITH CAVCO INDUSTRIES

Greenbriar Sustainable Living Inc. has executed a 12-month memorandum of understanding with Cavco Industries Inc.

Cavco is a builder of manufactured homes in North America with annual audited 2023 revenues of $1.8-billion (U.S.), $158-million (U.S.) in net profit, $579-million (U.S.) in working capital and a closing price per share on Sept. 16, 2024, of $417.17 (U.S.) on the Nasdaq Global Select Market. With four manufacturing facilities in Texas, North Carolina, California and Arizona, and more than 230 retail partners, Cavco serves customers across Arizona, California, Colorado, Louisiana, Nevada, New Mexico, North Carolina, Oklahoma, Texas and Utah. Each of Cavco's factory-built homes is constructed in a controlled indoor environment at a fraction of the time and cost of a site-built home and is partially or fully customizable to a buyer's wish list. Cavco has built and sold more than 500,000 manufactured homes.

The problem

The United States faces a national shortage of affordable homes at current prices and mortgage rates; few Americans can afford to buy a house today. Many are priced out of the American Dream due to high housing prices (national average: $412,300 (U.S.)), high interest rates (current 30-year mortgage rates are near 6.5 per cent) and supply challenges. Nearly 70 per cent of existing home owners took advantage of low financing rates from 2018 to 2021, and are thus rate-locked into their current residence. Much of the marginal supply from retiring baby boomers is too big (greater than 3,500 square feet), in the wrong location (Northeast and Midwest U.S. regions) or too expensive for the current buyers. Within this priced-out buying group are college graduates, down-sizing seniors and military veterans, and these large cohorts have driven up rents nationally. Americans are currently faced with choosing between mortgage payments they cannot afford, high rents which build no equity or neighbourhoods they do not want to live in. California is a compelling example with 39 million official residents and a median family home price of $773,363 (U.S.). The Golden State has an estimated shortage of 3.5 million affordable homes.

The solution

Greenbriar received full entitlement for a 995-home, entry-level-priced, green subdivision in Southern California in 2021 and a final precise development plan approval in November, 2023. Greenbriar has access for 3,500 more homes in Cedar City, Utah. Cavco is a designer and builder of manufactured homes in North America. Greenbriar has an immediate pipeline of 4,500 entry-level sustainable homes. Together, Greenbriar and Cavco, through the MOU, will collaborate on placing Cavco homes at Greenbriar select locations.

On Wednesday, Sept. 11, 2024, the U.S. Department of Housing and Urban Development (HUD) implemented the most extensive changes to its Manufactured Home Construction and Safety Standards (HUD Code) in more than 30 years. While the HUD Code changes include almost 90 new and updated standards to foster innovation, improve safety and accelerate the production of homes, the HUD's official approval for the building of duplex, triplex and quadplex homes nationwide includes a waiver allowing for immediate construction. This move, to address the nation's affordable housing crisis, enables homebuilders to push for more creative housing solutions using manufactured homes. Cavco was the first manufactured homebuilder to work with HUD to build the first HUD-approved single- and double-section true duplexes as part of its innovative Anthem series. Cavco launched the first HUD-approved multisection duplex in Rocky Mount, Va., in December, 2023, and unveiled the first HUD-approved single-section manufactured duplex in Washington, D.C., in June, 2024. This innovative single-section Anthem duplex model, the Blue Ridge, has two separate living units built on one frame or section. One of the living units is a two-bedroom, one-bath, and the other a one-bedroom, one-bath. Both units offer a spacious, open-plan living area and designer kitchen and bathroom, and are separated by a firewall.

About Greenbriar Sustainable Living Inc.

Greenbriar is a developer of sustainable real estate and renewable energy. With long-term, high-impact projects and led by a successful industry-recognized operating and development team, Greenbriar targets deep-valued sustainable assets directed at accretive shareholder value.

We seek Safe Harbor.