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 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").
On 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.
The 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.
The 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.
Furthermore, 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 shareholder value and reward the Company's shareholders, however any such plan is subject to be approved by the Company's board of directors.
Mr. Jiancong Huang, Chairman of ZK International, commented, "We are committed to doing everything we can to continue to increase shareholder value. This investment in Recruiter.com aligns with our strategic goals and demonstrates our dedication to leveraging growth opportunities. Our planned distribution further underscores our commitment to rewarding our shareholders."
About ZK International Group Co., Ltd.
ZK International Group Co., Ltd. is a China-based engineering company building and investing in innovative technologies for the modern world. With a focus on designing and implementing next-generation solutions through industrial, environmental and software engineering, ZKIN owns 46 patents, 46 trademarks, 5 Software Copyrights, 2 National Innovation Fund Awards, and 41 National and Industry Standard Awards.
ZKIN's core business is to engineer and manufacture patented high-performance stainless steel and carbon steel pipe products that effectively deliver high quality, highly sustainable and environmentally sound drinkable water to the Chinese, Asia and European markets. ZK International is Quality Management System Certified (ISO9001), Environmental Management System Certified (ISO1401), and a National Industrial Stainless Steel Production Licensee. It 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. ZK International is preparing to capitalize on the $850 Billion commitment made by the Chinese Government to improve the quality of water, which has been stated to be 70% unfit for human contact.
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.
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.
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SOURCE ZK International Group Co., Ltd.