WENZHOU, China, Nov. 29,
2023 /PRNewswire/ -- ZK International
Group Co., Ltd. (Nasdaq: ZKIN) ("ZKIN," "ZK
International" or the "Company"), a leading provider of advanced
steel products, is pleased to announce a financial boost with a
$5 million passive investment
commitment from the CF Opportunity Fund Ltd., which is a
Bahamas-based fund.
Univest Securities acted as the sole placement agent in
facilitating this strategic financing, marking a significant
milestone in ZKIN's journey towards enhanced growth and
innovation.
About the Financing:
ZKIN has successfully secured a substantial passive investment
of $5 million from a Bahamas Fund,
signaling a vote of confidence in the Company's vision and future
prospects. The investment will be made in three separate
subscriptions and one closing, demonstrating a structured approach
to fostering a long-term belief in the Company's vision and
future.
The Initial Subscription - Establishing Foundations:
An initial investment of $1,500,000 will be completed within three
business days after signing the Securities Purchase Agreement (the
"Agreement") (the "Initial Subscription Date"). This initial phase
sets the tone for the partnership's future by providing essential
capital when it is most needed. The agreed per-share price for this
closing is equal to $1.70 per
share.
The Second Subscription - Fortifying Collaboration:
Following the successful completion of the initial tranche, an
additional $2,000,000 investment will
be executed within 60 days from the Initial Subscription Date (the
"Second Subscription Date"). This second phase will look at
solidifying CF Fund's belief in the Company's vision.
The Third Subscription - Sustaining Momentum:
Building on the momentum of the previous subscriptions, the
final investment of $1,500,000 will
be concluded within 60 days from the Second Subscription Date (the
"Third Subscription Date"). The per-share price for this closing is
equal to 165% of the higher of (i) the Initial Bid Price, (ii) or
the closing bid price as of the trading day immediately prior to
the Third Closing Date, or (ii) the average closing bid price
during the five trading days immediately prior to the Third
Subscription Date.
Strengthening ZKIN's Financial Position:
This financing marks a significant milestone, providing ZKIN
with a robust financial foundation to expedite its mission of
delivering innovative steel products and solutions globally. The
invaluable support from CF Opportunity Fund Ltd., facilitated by
Univest Securities, will empower ZKIN to explore new opportunities,
expand its operations internationally, and fortify its position in
the dynamic steel industry.
A Pioneering Journey:
Remaining steadfast in its commitment to innovation, excellence,
and sustainable growth, ZK International Group Co., Ltd. welcomes
this substantial passive investment from CF Opportunity Fund Ltd.
Aligned with the Company's vision, this financing opens doors to a
promising future. ZKIN eagerly anticipates the collaborative
efforts that will help shape the future landscape of the steel
industry.
Mr. Jiancong Huang, Chairman of
the Company, stated, "We are delighted by the trust placed in ZK
International Group Co., Ltd. by the CF Opportunity Fund Ltd.
This strategic financing not only strengthens our financial
standing but also underscores the shared belief in our commitment
to delivering cutting-edge solutions to its shareholders. With an
above market pricing by the fund just solidifies that the Company
is undervalued and has more foreseeable growth in the future.
Mr. Chris Fraunenknecht, CEO of the CF Opportunity Fund Ltd.,
emphasizes, "that this passive investment is not intended for
establishing control of ZKIN, but instead should signal that the
fund is committed to a supportive role, fostering growth and
innovation while respecting the existing leadership and strategic
direction of ZK International Group Co., Ltd."
For more information, please
visit www.ZKInternationalGroup.com. Additionally, please
follow the Company
on Twitter, Facebook, YouTube,
and Weibo. For further information on the Company's SEC
filings please visit www.sec.gov.
About ZK International Group Co., Ltd.:
ZK International Group Co., Ltd. is a China-based
engineering company building and investing in innovative
technologies for the modern world. With a focus on designing and
implementing next-generation solutions through industrial,
environmental and software engineering, ZKIN owns 28 patents,
21 trademarks, 2 Technical Achievement Awards, and 10 National and
Industry Standard Awards.
ZKIN's core business is to engineer and manufacture patented
high-performance stainless steel and carbon steel pipe products
that effectively deliver high quality, highly-sustainable and
environmentally sound drinkable water to the Chinese, Asia and European markets. ZK
International is Quality Management System Certified (ISO9001),
Environmental Management System Certified (ISO1401), and a National
Industrial Stainless Steel Production Licensee. It has
supplied stainless steel pipelines for over 2,000 projects, which
include the Beijing National Airport, the "Water Cube" and "Bird's
Nest", which were venues for the 2008 Beijing Olympics. ZK
International is preparing to capitalize on the $850 Billion
commitment made by the Chinese Government to improve the quality of
water, which has been stated to be 70% unfit for human contact.
Safe Harbor Statement
This news release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended,
and as defined in the U.S. Private Securities Litigation Reform Act
of 1995. Without limiting the generality of the foregoing, words
such as "may," "will," "expect," "believe," "anticipate," "intend,"
"could," "estimate" or "continue" or the negative or other
variations thereof or comparable terminology are intended to
identify forward-looking statements. In addition, any statements
that refer to expectations, projections or other characterizations
of future events or circumstances are forward-looking statements.
These forward-looking statements are not guarantees of future
performance and are subject to certain risks, uncertainties and
assumptions that are difficult to predict and many of which are
beyond the control of ZK International. Actual results may
differ from those projected in the forward-looking statements due
to risks and uncertainties, as well as other risk factors that are
included in the Company's filings with the U.S. Securities and
Exchange Commission. Although ZK International believes that
the assumptions underlying the forward-looking statements are
reasonable, any of the assumptions could prove inaccurate and,
therefore, there can be no assurance that the results contemplated
in forward-looking statements will be realized. In light of
the significant uncertainties inherent in the forward-looking
information included herein, the inclusion of such information
should not be regarded as a representation by ZK International or
any other person that their objectives or plans will be achieved.
ZK International does not undertake any obligation to revise the
forward-looking statements contained herein to reflect events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events.
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SOURCE ZK International Group Co., Ltd.