Ecoark Holdings Inc. (NASDAQ:ZEST) announced on October 13, 2022, about all common and preferred stockholders of record will receive on a pro-rata basis, one share of Zest Labs Inc. common stock for every share of Ecoark share they own (or on a converted basis for its preferred stockholder) through a future distribution via spin-off of Ecoark’s ownership of capital stock in Zest Labs Inc. This is as of the close of business on Tuesday, November 15, 2022.
On Thursday, ZEST stock lost 10.53% to $0.6800 with more than 34.57K shares, compared to its average volume of 58.52K shares. The stock moved within a range of $0.6800 – 0.7800 after opening trade at $0.7600.
Ecoark Holdings Announces Record Date for Stock Dividend for Upcoming Zest Labs Spin-off Transaction
The company plans to file a Form 10, with the Securities and Exchange Commission (SEC) in October 2022, which, according to regulatory requirements, is expected to receive approval in approximately 60 calendar days. After it is effective, Zest will go public as a separately traded public company in December 2022, and free trading shares will be distributed to shareholders of record on November 15, 2022, before the calendar year-end 2022.
Zest has formally amended its charter from October 13, 2022, to require the company to distribute no less than 95% of any net proceeds received from any current intellectual property litigation to the Zest shareholders of record on November 15, 2022, who received the planned stock dividend in December 2022.
The company has also filed the State of Nevada to issue a new series of super-majority voting preferred stock that could be utilized by the Zest Board of Directors while it is a stand-alone public company. It can successfully combat any hostile takeover attempts, whether by adversaries in litigation or otherwise, at a valuation deemed sub-optimal for shareholders by the Zest Board of Directors.
ZEST stock is trading below the 20-Day and 50-Day Moving averages of $1.13 and $1.61 respectively. Moreover, the stock is trading below the 200-Day moving average of $2.13.