Ecoark Announces $10 Million Registered Direct Offering

ROGERS, Ark.--()--Ecoark Holdings, Inc. (OTCQX: EARK), a diversified holding company, today announced that it has entered into definitive agreements with two existing institutional investors for an offering of 2,500,000 shares of common stock, at a price per share of $4.00, issued with warrants to purchase 1,875,000 shares of common stock. The warrants have an exercise price of $5.50 per share and will expire five years from the date of issuance. The closing of the offering is expected to take place on or about May 26, 2017, subject to the satisfaction of customary closing conditions.

Rodman & Renshaw, a unit of H.C. Wainwright & Co., is acting as the exclusive placement agent in connection with this offering. Net proceeds from the offering are expected to be approximately $9.1 million, excluding potential proceeds from the exercise of the warrants. Ecoark intends to use the net proceeds from the offering for growth and working capital to help its subsidiaries’ commercialization efforts, such as Zest Labs, and to add additional strategic acquisitions to its portfolio.

The securities described above are being offered by Ecoark Holdings 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 and 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, or from H.C. Wainwright & Co., LLC by e-mailing placements@hcwco.com or calling 646-975-6996.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein. There shall not be any offer, solicitation of an offer to buy, or sale of securities in any state or jurisdiction in which such an offering, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Ecoark Holdings Inc.

Founded in 2011, Ecoark Holdings, Inc. is a diversified holding company focused on delivering long-term shareholder value. The company currently has three wholly-owned subsidiaries: Zest LabsPioneer Products and Magnolia Solar. For more information, please visit www.ecoarkusa.com, and follow us on Twitter and LinkedIn.

Forward Looking Statement:

This release contains forward-looking statements, including, without limitation, statements concerning our business and possible or assumed future results of operations and statements relating to our expectations regarding the completion of the proposed registered offering. 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; our ability to list our shares of common stock on a national exchange; the timing, size and closing of the offering, the use of proceeds from the offering and other risks and uncertainties as may be detailed from time to time in our public announcements and SEC filings. Other factors that may cause such a difference include, without limitation, risks and uncertainties related to market and other conditions, the satisfaction of customary closing conditions related to the proposed registered offering and the impact of general economic, industry or political conditions in the United States or internationally. 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.

Contacts

Investor Relations:
ICR, Inc.
John Mills, 646-277-1254
Managing Partner
John.Mills@icrinc.com
or
Public Relations:
fama PR
Keith Watson, 617-986-5001
ecoark@famapr.com

Release Summary

Ecoark Holdings, Inc. (OTCQX: EARK), a diversified holding company, today announced that it has entered into definitive agreements with two existing institutional investors.

Contacts

Investor Relations:
ICR, Inc.
John Mills, 646-277-1254
Managing Partner
John.Mills@icrinc.com
or
Public Relations:
fama PR
Keith Watson, 617-986-5001
ecoark@famapr.com