Ecoark Holdings, Inc. (OTCQX: EARK), a provider of a suite of proprietary technologies and services that drive sustainability and facilitate sustainable growth for a wide range of clients, today announced it has completed a sale of the assets of its subsidiary, Eco3d, for cash and assets with a value of approximately $4.8 million. The transaction was completed on April 14, 2017. Proceeds from the sale consist of $1.9 million cash, 560,000 shares of Ecoark Holdings, Inc.’s common stock, returned to the company by the buyer’s principals at $4.74 per share, the closing share price on the date of the transaction closing, and the assumption of liabilities, including $200,000 payable to Ecoark Holdings within four months.
“This transaction is another significant step in our strategic growth plan, as it allows us to further focus our efforts on the commercialization and eventual profitability of our core technologies, such as Zest Fresh, and to add additional strategic acquisitions to our portfolio that provide the greatest opportunity of generating long-term shareholder value,” said Jay Puchir, CEO, Ecoark Holdings, Inc. “Eco3d was a positive addition to our portfolio, as it had strong management and was well recognized as an industry-leader within its space. As Ecoark continues to hone its focus towards its core mission, we will continue to allocate new and existing capital toward investments that provide long-term shareholder value as we enter this exciting next phase for our Company and our shareholders.”
The sale is one of several recent steps taken by the Company to further streamline operations and reallocate capital to achieve its core mission — generate long-term shareholder value by establishing and developing a portfolio of subsidiaries featuring either stable, free cash flow positive businesses or opportunistic, scalable technologies. The Company will continue its production of commercialized solutions to solve the $35 billion dollar problem of fresh food loss within the supply chain, led by its wholly owned subsidiary Zest Labs and its fresh management solution, Zest Fresh. Zest Labs has an opportunistic, scalable technology that reduces waste and maintains freshness quality, consistency, and margins within the fresh foods supply chain, providing real-time feedback that empowers workers to maintain best practices.
About Ecoark Holdings, Inc.
Based in Rogers, AR and founded in 2011, Ecoark Holdings, Inc. is a growth-oriented company based in the retail and logistics hub of Northwest Arkansas. Ecoark’s current portfolio of subsidiaries monetize the reduction of waste in Operations, Logistics, and Supply Chains across the evolving global economy.
Ecoark’s vision is to deploy a company-first philosophy using radical transparency to optimize capital deployment via aggressive deal flow sourcing and vetting, and achieve financial objectives by hiring and developing strong, properly incentivized managers.
Ecoark addresses these vital economic factors through three active subsidiaries, Zest Labs, Pioneer Products, and Magnolia Solar.
For more information, please visit https://www.ecoarkusa.com/.
Forward Looking Statement:
This release contains forward-looking statements, including, without limitation, statements concerning our business and possible or assumed future results of operations. Our actual results could differ materially from those anticipated in the forward-looking statements for many reasons including: our ability to continue as a going concern; adverse economic changes affecting markets we serve; competition in our markets and industry segments; our timing and the profitability of entering new markets; greater than expected costs, customer acceptance of our products or difficulties related to our integration of the businesses we may acquire; and other risks and uncertainties as may be detailed from time to time in our public announcements and SEC filings. Although we believe the expectations reflected in the forward-looking statements are reasonable, they relate only to events as of the date on which the statements are made, and our future results, levels of activity, performance or achievements may not meet these expectations. We do not intend to update any of the forward-looking statements after the date of this document to conform these statements to actual results or to changes in our expectations, except as required by law.