Business
ECOARK HOLDINGS, INC ENTERS INTO AGREEMENT TO ACQUIRE BANNER MIDSTREAM CORP AND SECURES FIRM COMMITMENT FOR $35 MILLION TERM LOAN
ECOARK HOLDINGS, INC ENTERS INTO AGREEMENT TO ACQUIRE BANNER MIDSTREAM CORP AND SECURES FIRM COMMITMENT FOR $35 MILLION TERM LOAN.
About this update from Riskon International, Inc.
[{"type":"text","content":"\n SAN JOSE, Calif., March 31, 2020 (GLOBE NEWSWIRE) -- Ecoark Holdings, Inc. (\"Ecoark\") (OTC: ZEST), announced that it has entered into a definitive agreement to purchase Banner Midstream Corp. (“Banner Midstream”) from Banner Energy Services Corp. (“Banner Energy”) (OTC: BANM).  The transaction includes the issuance of approximately 8.9 million shares of Ecoark common stock at $0.73 per share, or a 40% premium to Ecoark’s March 27 closing share price of $0.52/share, to Banner Energy for the acquisition purchase in addition to the assumption of approximately $11.2 million in short-term and long-term debt of Banner Midstream.  The combined balance sheet and business fundamentals will strengthen Ecoark’s planned application to up list to a national exchange. Ecoark has also secured a firm commitment for a $35 million long-term loan from an institutional lender to make additional investments in the energy sector.  The supply-side shock from OPEC production increases coupled with the demand-side impact of the COVID-19 pandemic is continuing to drive oil prices to historic lows, resulting in unprecedented investment opportunities.  This financing positions Ecoark to take advantage of these unique investment opportunities in the energy market. The loan commitment specifies a 20-year term and will carry a 6.25% interest rate. “The acquisition of Banner Midstream reflects a first step in our strategy to strengthen our operations and long-term business viability. We look forward to evaluating additional investment opportunities in the energy markets as they offer positive cash flow at historically low prices,” said Randy May, Chairman and CEO of Ecoark.  “Completing the acquisition of a business prior to Ecoark’s March 31st fiscal year-end will further strengthen the company’s ability to meet the criteria to up list to a national exchange”, said Brad Hoagland, CFA, Principal Financial Officer of Ecoark. Banner Midstream has 4 operating subsidiaries: Pinnacle Frac Transport LLC (“Pinnacle Frac”), Capstone Equipment Leasing LLC (“Capstone”), White River Holdings Corp (“White River”), and Shamrock Upstream Energy LLC (“Shamrock”).  Pinnacle Frac provides transportation of frac sand and logi...