Business
ZK International Group Co., Ltd. Announces $2 Million Investment in NASDAQ Listed Company Recruiter.com Group, Inc.
WENZHOU, China, July 19, 2024 /PRNewswire/ -- ZK International Group Co., Ltd. (Nasdaq: ZKIN) ("ZKIN", "ZK International" or the "Company"), a leading
About this update from Zk International Group Co., Ltd
[{"type":"text","content":"WENZHOU, China, July 19, 2024 /PRNewswire/ -- ZK International Group Co., Ltd. (Nasdaq: ZKIN) (\"ZKIN\", \"ZK International\" or the \"Company\"), a leading manufacturer and supplier of patented high-performance stainless steel and carbon steel pipe products, is pleased to announce that on July 12, 2024, the Board of Directors approved and ratified an investment of $2 million in Recruiter.com Group, Inc. (Nasdaq: RCRT) (\"Recruiter.com\") through the purchase of 2,000,000 shares of Common Stock at a purchase price of $1.00 per share. This investment includes a six-month option to purchase an additional 2,000,000 shares at $1.00 per share pursuant to certain Stock Purchase Agreements dated July 12, 2024 (the \"SPA\") by and between the Company and Recruiter.com (the \"2024 Exempt Offering\").\n\nOn July 12, 2024, we entered into an SPA with Recruiter.com, which is a Nasdaq-listed company. As a result, the shares to be issued in the 2024 Exempt Offering are exempt from the registration requirements of the Securities Act, pursuant to Regulation S promulgated under the Securities Act. In addition, on July 12, 2024, we entered into a Registration Rights Agreement (the \"RRA\") with Recruiter.com. The Company shall prepare and, as soon as practicable but in no event later than 150 days after the Closing Date (as defined in the SPA), file with the Securities and Exchange Commission (the \"Commission\") a registration statement on Form S-3 covering the resale of all of the Registrable Securities (as defined in the RRA). The registration statement shall include all of the Registrable Securities as of the date such registration statement is initially filed with the Commission. If Form S-3 is unavailable for such registration, the Company shall use such other form as required.\nThe SPAs contain customary representations and warranties of Recruiter.com and the Purchasers, indemnification obligations of the Purchasers, and other obligations and rights of the parties.\nThe SPA between the Company and Recruiter.com also includes a six-month option to purchase an additional 2,000,000 shares of common stock at a purchase price of $1.00 per share.\nFurthermore, ZK International is pleased to announce its future intention to issue a share dividend to its shareholders from its investment in Recruiter.com. This planned distribution aims to enhance s...