ZKIN to raise funds with XRP-denominated warrants

WENZHOU, China - ZK International Group Co., Ltd. (NASDAQ:ZKIN), a company currently valued at $18 million and showing a significant 21% return over the past week according to InvestingPro data, along with its subsidiary xSigma Corporation, announced plans to raise up to $1 billion by issuing ZKIN warrants to the global XRP community. This strategy, pending legal review and board approval, is designed to bridge the gap between the cryptocurrency market and the stock capital market.

ZK International’s approach will enable XRP holders to invest in a NASDAQ-listed company without the need to convert their digital assets into fiat currency. The initiative targets Ripple’s XRP, which has a market cap of about $130 billion and over 5 million active wallets, reflecting its widespread adoption and liquidity.

To facilitate this strategy, ZK International intends to sign a strategic consulting agreement and appoint a Crypto Integration Facilitator, who will be responsible for services including research, feasibility analysis, and compliance related to blockchain and digital asset initiatives.

The company emphasizes the alignment of blockchain utility with public market innovation, aiming to provide a compliant platform for both retail and institutional investors to engage with decentralized finance. The warrants, if exercised, would provide investment exposure to ZKIN and contribute funds to the company’s operations. InvestingPro analysis reveals the company is currently operating with a significant debt burden, with a debt-to-equity ratio of 0.96, while quickly burning through available cash.

Jiancong Huang, Chairman of ZKIN, stated that the market values companies that innovate with digital asset access models, especially when engaging with real communities. He highlighted that the strategy is not speculative but is intended to bring decentralized finance to Wall Street through compliant mechanisms.

ZK International specializes in engineering and manufacturing high-performance stainless steel and carbon steel pipe products. The company holds numerous patents, trademarks, and awards and has been involved in major projects such as the Beijing National Airport and the venues for the 2008 Beijing Olympics. It is also positioned to benefit from China’s commitment to improving water quality. Recent InvestingPro data shows the company generated revenue of $108.2 million in the last twelve months, though with challenging gross profit margins of just 6%. According to InvestingPro’s Fair Value analysis, the stock currently appears undervalued despite its operational challenges.

The company cautions that there is no assurance that the warrants will become exercisable or that the XRP received will retain its value or liquidity. This news is based on a press release statement from ZK International Group Co., Ltd.

In other recent news, ZK International Group Co., Ltd. has regained compliance with Nasdaq’s minimum bid price requirement. The company received notification from Nasdaq confirming that its closing bid price had remained above $1.00 for ten consecutive business days. This development fulfills the Nasdaq Capital Market’s Listing Rule 5550(a)(2) and resolves the bid price deficiency issue. ZK International has expressed its commitment to maintaining high standards of corporate governance and compliance. The company also acknowledged the support from its shareholders during this period. This announcement comes as ZK International aims to capitalize on the Chinese government’s investment in water quality improvements. The company is preparing to contribute to addressing the significant water quality challenges in China. These developments reflect ZK International’s ongoing efforts to align with market regulations and leverage upcoming opportunities.

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