Business
ZK International and Altbanc Join Forces to Launch a Fixed Income Token Offering
WENZHOU, China, April 14, 2021 /PRNewswire/ -- ZK International Group Co., Ltd. (Nasdaq: ZKIN) ("ZKIN", "ZK International" or the "Company"), is pleased to
About this update from Zk International Group Co., Ltd
[{"type":"text","content":"WENZHOU, China, April 14, 2021 /PRNewswire/ -- ZK International Group Co., Ltd. (Nasdaq: ZKIN) (\"ZKIN\", \"ZK International\" or the \"Company\"), is pleased to announce that the Company has entered into a Letter of Intent to form a joint-venture with Altfunding, LLC, doing business as \"Altbanc\", a rapidly-growing, privately-held alternative lending platform. The Joint Venture will be branded as \"xSigma Lending\" where Altbanc will hold 49% ownership and ZKIN will hold 51% ownership. The purchase price is $2,000,000. The new partnership is expected to accelerate Altbanc's business development, while providing income yielding returns and value for ZKIN and its shareholders.\n\n \n \n \n \n \n \n\n \nSince 2019, Altbanc has invested in distressed small to medium sized businesses (\"SMBs\") that are overleveraged with merchant cash advances (\"MCA\") debt, often nearing bankruptcy. Through its proven lending product, Altbanc has kept businesses afloat while providing investors with high-yield, secured debt investments. Under the new partnership, Altbanc will leverage ZKIN's successful track record of DeFi projects and will launch a Reg-S offering that will be used to fund a new fixed-income token. As part of ZKIN's investment in Altbanc, $1.5 million will be earmarked for ZKIN to participate in the token offering. All proceeds of the token sale will be deployed into refinancing MCAs that fit the Altbanc underwriting criteria. The loan proceeds from the MCA debt investments will be paid out to holders of the xSigma Lending security tokens. The token sale will not be available to US investors but the token will be fully compatible with existing decentralized exchanges and mainstream Ethereum based wallets. The purpose of the security token is to create a liquid security through which token holders can get exposure to MCA consolidations and to make these interest-bearing and low-risk investments accessible to a wider range of investors. \nAs Altbanc scales and secures additional funding, ZKIN shareholders will accrue value through ownership in the Company's newest subsidiary, xSigma Lending. All proceeds from xSigma Lending originated loans will be paid out to token holders and ZKIN shareholders.\nTo achieve their goals, Altbanc has brought together an award-winning and highly reputable team. Chris von Pohlot is a fintech entrepre...