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.
Since 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.
As 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.
To achieve their goals, Altbanc has brought together an
award-winning and highly reputable team. Chris von Pohlot is a fintech entrepreneur with
a background in alternative financing, he holds a degree from
Columbia University. Kevin Quinn was previously a PhD student in
Computer Science at the University of
Washington, going on to lead engineering teams at Google.
Kamal Obbad, a Harvard graduate who led
product and engineering teams at Google and currently serves as
head of research for xSigma. He was featured in Forbes 30 under 30.
Aiding them in underwriting is Steven
Hunter, a 20-year veteran in the MCA industry who has
trained numerous shops and underwritten over 70,000 successful
loans.
The Chairman of the Company, Mr. Jiancong Huang, states, "I am excited to be
partnering with the experienced team at Altbanc with the plans of
launching a fixed income digital token offering during a time where
we are seeing the cryptocurrency markets hitting all-time highs and
where we are witnessing Coinbase, (NASDAQ:COIN) which is the
largest U.S. cryptocurrency exchange being listed on NASDAQ paving
the way for the future of cryptocurrencies."
At the time of this release we witnessed the coming of the
cryptocurrency industry as follows:
- Bitcoin hit a record of US$63,769, extending its 2021 rally to new
heights a day before the listing of Coinbase shares in the United States.
- Smaller rival Ethereum also reached a record high of
US$2,205.
- The largest U.S. cryptocurrency exchange's listing on the
Nasdaq on Wednesday is considered a landmark victory for
cryptocurrency advocates.
- Bitcoin is the world's biggest cryptocurrency, with growing
mainstream acceptance as an investment and a means of payment. It
rose as much as 5 per cent on Tuesday.
- The overall cryptocurrency market capitalization hit an
all-time peak of US$2-trillion
earlier this month, according to data and market trackers CoinGecko
and Blockfolio.[1]
[1]
https://www.theglobeandmail.com/investing/article-bitcoin-hits-record-high-day-before-coinbase-ipo/
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About ZK International Group Co., Ltd.
ZK International Group Co., Ltd. is a China-based designer,
engineer, manufacturer and supplier of patented high-performance
stainless steel and carbon steel pipe products that require
sophisticated water or gas pipeline systems. The Company owns 28
patents, 21 trademarks, 2 Technical Achievement Awards, and 10
National and Industry Standard Awards. ZK International is
preparing to capitalize on the $850 Billion commitment made by
the Chinese Government to improve the quality of water, which in
its current supply state is 70% unfit for human contact. ZK
International is Quality Management System Certified (ISO9001),
Environmental Management System Certified (ISO1401), and a National
Industrial Stainless Steel Production Licensee that is focused on
supplying steel piping for the multi-billion dollar industries of
Gas and Water sectors. ZK 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. Emphasizing superior
properties and durability of its steel piping, ZK International is
providing a solution for the delivery of high quality, highly
sustainable, environmentally sound drinkable water to not only to
the China market but to international markets such
as Europe, East Asia and Southeast
Asia.
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 Altbanc
Altbanc is a financial technology platform that provides
alternative lending products to B2B small-and-medium sized
businesses. Altbanc's first product focuses on refinancing merchant
cash advances (MCAs) into longer-term and sustainable loans. Their
mission is to provide investors with access to distressed debt
opportunities that provide predictable returns and less uncertainty
than market-based investing. The company's technology streamlines
underwriting and provides a low-friction experience for borrowers.
For more information: www.altbanc.us
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.
Investor Contact:
Sherry Zheng
Weitian Group LLC
Email: shunyu.zheng@weitian-ir.com
Phone: +1 718-213-7386
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SOURCE ZK International Group Co., Ltd.