World News: 14:50 GMT Friday 10th August 2018. [Ecoark Holdings, Inc. via Globe Newswire via SPi World News]
ROGERS, Ark., Aug. 10, 2018 (GLOBE NEWSWIRE) -- . (“Ecoark”), to be renamed Zest Technologies, Inc., (OTCQX: ZEST), an AgTech company focused on solutions that reduce food waste and improve product margins, today announced it has entered into definitive agreements with certain accredited investors for an offering of 2,968,750 shares of common stock, at a price per share of $1.60, issued with warrants to purchase 2,968,750 shares of common stock. The warrants have an exercise price of $2.09 per share with full ratchet exercise price protection upon the future issuance of securities below such price and will expire five years from the date of issuance. The closing of the offering is expected to take place on or about August 14, 2018, subject to the satisfaction of customary closing conditions. Ecoark also agreed to reprice the exercise price of certain outstanding warrants issued to investors to $2.50, including 1,000,000 warrants with an original exercise price of $5.00 issued to investors in a registered offering in March 2017 and 1,875,000 warrants with an original exercise price of $5.50 issued to investors in a registered offering in May 2017.
Maxim Group LLC and The Benchmark Company, LLC are acting as the placement agents. The offering is expected to yield total proceeds of approximately $4.75 million, before deducting potential proceeds from the exercise of the warrants. After deducting the placement agent’s commission and other estimated offering expenses payable by Ecoark, the net proceeds to Ecoark are anticipated to be approximately $4.3 million. Ecoark intends to use the net proceeds for general corporate purposes and working capital.
The securities described above are being offered by Ecoark Holdings, Inc. pursuant to a shelf registration statement (File No. 333-213186) previously filed with and subsequently declared effective by the Securities and Exchange Commission (the “SEC”). A prospectus supplement relating to the offering will be filed with the SEC and will be available on the SEC’s website at http://www.sec.gov. Following such filing, copies of the prospectus supplement and the accompanying base prospectus relating to this offering may be obtained at the SEC’s website at http://www.sec.gov. Electronic copies of the prospectus supplement and accompanying base prospectus may also be obtained from Maxim Group LLC, 405 Lexington Avenue, 2nd Floor, New York, NY 10174, at 212-895-3745.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities described herein. Nor shall there be any offer, solicitation of an offer to buy, or sale of securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction.
Investor Relations:John MillsICR646-277-1254
Public Relations:Greg WoodZeno Group for Zest Labs650-801-7958
Globe Newswire: 14:50 GMT Friday 10th August 2018
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