SAN ANTONIO, Aug 06, 2021 (GLOBE NEWSWIRE) – Ecoark Holdings, Inc. (“Ecoark”) (NASDAQ: ZEST), today announced the closing of its previously announced recorded direct offering at market price under the Nasdaq rules for the sale of a total of 3,478,261 common shares and warrants to purchase up to a total of 3,478,261 common shares at a purchase price of $ 5.75 per common share and related warrant . The warrants have an exercise price of $ 5.75 per share, will become exercisable when the Company increases its authorized share capital to 40 million shares and will expire three and a half (3.5) years after the date on which the warrants will become exercisable for the first time.
HC Wainwright & Co. acted as the exclusive placement agent for the offering.
The gross proceeds of the offering were approximately $ 20 million before the deduction of placement agent fees and other expenses related to the offering. Ecoark intends to use the net proceeds to deploy approximately $ 7.0 million in new drilling projects for its previously announced drilling program, approximately $ 3.0 million to invest in development of the operation potential digital asset mining company in Texas, roughly $ 1.0 million to fund potential new intellectual property. litigation legal fees and deposits; and the remaining balance for additional growth capital projects to be determined, working capital and general corporate purposes.
The securities described above were offered and sold by Ecoark as part of a registered direct offer in accordance with a “shelf” registration statement on Form S-3 (registration number 333–249532), including including a base prospectus previously filed with the Securities and Exchange Commission. (the “SEC”) on October 16, 2020 and became effective on December 29, 2020. The offer of such securities has been made only by way of a prospectus supplement which forms part of the registration statement. A final prospectus supplement and base prospectus relating to the registered direct offering have been filed with the SEC and are available on the SEC’s website at http://www.sec.gov. Electronic copies of the Prospectus Supplement and accompanying Base Prospectus can also be obtained by contacting HC Wainwright & Co., LLC at 430 Park Avenue, 3rd Floor, New York, NY 10022, by telephone at (212) 856 -5711 or by e-mail to [email protected]
This press release does not constitute an offer to sell or the solicitation of an offer to buy, and there will be no sale of such securities in any state or jurisdiction in which such an offer, solicitation or sale would be illegal. prior to registration or qualification under the securities laws of any such state or jurisdiction.
About Ecoark Holdings, Inc.
Founded in 2011, Ecoark is a diversified holding company. The Company has three wholly owned subsidiaries: Zest Labs, Inc. (“Zest Labs”), Banner Midstream Corp (“Banner Midstream”) and Trend Discovery Holdings (“Trend Discovery”). Zest Labs offers the Zest Fresh ™ solution, a revolutionary approach to managing the quality of fresh food, specially designed to help dramatically reduce the $ 161 billion in food loss the United States experiences each year. Banner Midstream is engaged in oil and gas exploration, production and drilling operations on more than 30,000 cumulative acres of active mining claims in Texas, Louisiana and Mississippi. Banner Midstream also provides transportation and logistics services and purchases and finances equipment for oilfield transportation service contractors. Trend Discovery invests annually in a number of start-ups as part of the fund’s venture capital strategy; we are open-minded investors with a founder’s mindset. Trend Discovery LP has an audited history of uncorrelated outperformance of the S&P 500 since inception.
ZEST FRESH ™ and Zest Labs ™ are trademarks of Zest Labs, Inc.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to the intended use of the products and other statements that are not statements of historical fact. The words “believe”, “can”, “estimate”, “continue”, “anticipate”, “intend”, “should”, “plan”, “could”, “target”, “target” “will be “,” Expect “and similar expressions, as far as we are concerned, are intended to identify forward-looking statements. These statements are based on management’s current expectations and beliefs, as well as a number of assumptions about future events. These forward-looking statements are subject to known and unknown risks, uncertainties, assumptions and other important factors, such as market and other conditions, many of which are beyond the control of management. Important factors that could cause actual results to differ from those of forward-looking statements include market and other conditions, completion of the registered direct placement, satisfaction of customary closing conditions associated with the registered direct placement, l ‘planned use of the net proceeds of the registered direct offering and obtaining the shareholder approval required to increase the authorized capital. Additional Risks and Uncertainties Risks and uncertainties are identified and discussed in documents filed by Ecoark with the SEC, including the Annual Report on Form 10-K for the year ended March 31, 2021. Any forward-looking statements we make here only applies on the date it is made. Other factors or events that could cause our actual results to differ from time to time may occur from time to time, and we cannot predict all of them. We assume no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.