Ecoark Holdings Provides Update to Investors on Recent Transactions and Future Strategic Plans

Ecoark Spin-off Strategy Designed to Maximize Generation of Shareholder Value

SAN ANTONIO, Aug. 12, 2022 (GLOBE NEWSWIRE) -- Ecoark Holdings, Inc. (“Ecoark” or the “Company”) (NASDAQ: ZEST) today announced executive management’s communication to its shareholders of the Company’s strategy to spin off its non-core subsidiaries to maximize the generation of shareholder value. As of the market close on August 11, 2022, Ecoark had a closing share price of $1.97 per share and market cap of approximately $52.14 million dollars.

On July 25, 2022, Ecoark executed a definitive agreement to sell its exploration and production business, White River Holdings Corp (“White River”), to Fortium Holdings Corp (“Fortium”) (OTC: FRTM) in an all-stock transaction for $30,000,000 of convertible preferred stock. On August 11, 2022, Ecoark executed a definitive agreement to sell its cryptocurrency mining business, Agora Digital Holdings, Inc. (“Agora Digital”), to HUMBL, Inc. (“HUMBL”) (OTC: HMBL) in an all-stock transaction for $60,000,000 of convertible preferred stock; the transaction is subject to various closing conditions which Ecoark believes will close in August 2022. Furthermore, on August 11, 2022, Ecoark entered into a non-binding letter of intent to divest its oilfield services business, Banner Midstream Corp (“Banner Midstream”), in an all-stock transaction to a confidential public company also engaged in oilfield services; further details will be disclosed to shareholders at the time of the execution of the reverse merger agreement which Ecoark expects to occur in August 2022. Upon the successful closing of all transactions, Ecoark plans to move forward with the acquiring companies to have registration statements filed to register the underlying shares of common stock for each series of common or preferred stock and then execute a stock dividend to distribute 100% of the fully converted shares of common stock to all Ecoark shareholders of record as of a future to be determined record date.

“As a diversified holding company, Ecoark’s executive team and Board of Directors are constantly monitoring the Company’s market cap versus our own estimated value of our underlying subsidiaries to assess whether the Company is fairly valued or not as a publicly traded company,” stated Randy May, Chairman and CEO of Ecoark. “Our belief, based on our current market cap, is that the market as a whole is valuing Ecoark almost entirely based on the prospects of our core subsidiary, Zest Labs, Inc. We feel, however, that the recently announced transactions of the divestitures of White River, Agora Digital, and Banner Midstream which are expected to generate approximately $100,000,000 in closing value prior to stock dividends are the most efficient manner for the Company to generate long-term shareholder value. We believe that the holding company model is no longer viable when the sum of all subsidiaries is significantly greater than the Company’s current market cap.”