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Zenergy Announces the Closing of $1.6M in Initial Funding, as Tranche 1 of a $10 Million Debenture Facility

By GlobeNewswire,  January 15, 2019, 07:00:00 AM EDT


DALLAS, TX, Jan. 15, 2019 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- Zenergy Brands, Inc. (OTCPK:ZNGY), the nation's leading next-generation utility, announced today it has closed a $10 Million Debenture facility with TCA Global Credit Master Fund, LP ("TCA"), a fund specializing in senior, secured lending and advisory services. 

After executing the initial Term Sheet on August 29, 2018, and several months of due diligence, Zenergy is thrilled to announce the closing of this transaction, effective December 26, 2018. The Company had been working around the clock towards this closing and believes that it is now in a position to effectively realize its vision to converge responsible energy use and management, smart controls/building automation, and energy conservation and efficiency under the Zenergy brand.                                            

"In November 2018, TCA representatives, including the lead underwriter, visited our offices and we spent the day reviewing our proprietary systems and procedures, while discussing the various assets known as ‘Zero Cost' contracts," said Mr. Joshua Campbell, Zenergy's Senior Vice President of Operations. "Going through this in-depth process reaffirmed our belief that our Zero Cost Program has real game-changing potential in the utility industry if we can continue to find good scalable funding sources."

Per the transaction, TCA has provided Zenergy with the initial tranche of $1.6 Million and will fund additional tranches up to $10 Million as the Company executes new revenue-generating contracts—Zero Cost and other related services, subject to TCA's sole discretion. Zenergy is forecasting that it will acquire several new contracts in Q1 and Q2 of 2019, and intends to use the Debenture facility to fulfill its obligations under these anticipated Managed Energy Services Agreements. 

Zenergy CEO, Mr. Alex Rodriguez, commented, "This is a monumental step in our lifecycle - we've got a truly innovative market-relevant offering in the Zero Cost Program. We believe that this debenture facility can allow us to grow the program effectively throughout 2019. I definitely view this event as the closing of one chapter and the opening of a new one for Zenergy."

Another characteristic of the transaction is the customized repayment schedule, which is a hybrid model that starts with interest-only payments for the first six months and then ramps up over the term, with the final six months representing more substantial balloon-style payments. The respective payments are due in monthly installments beginning on January 26, 2019, and ending on June 26, 2021.  

"This unique repayment model is a perfect fit for our Zero Cost contracts and demonstrates to us an institutional lender's effective understanding of our assets and how we generate revenue and asset value," remarked Mr. John Brooks Klingenbeck, Zenergy Vice President of Business Development.

Details on the TCA funding transaction can be found in the 8K the Zenergy recently filed with the SEC by clicking here. The Company urges all its shareholders and the investment community at large to subscribe to its corporate newsletter at www.zenergybrands.com to remain apprised of significant updates to follow and all official correspondences throughout 2019. Customers interested in Zenergy's products and services are encouraged to visit the Company at www.whatiszenergy.com.

ABOUT ZENERGY BRANDS, INC.

Zenergy Brands, Inc. (Ticker:ZNGY), is a next-generation energy and technology company operating in the emerging smart energy/utility industry. The Company provides energy conservation, smart controls, and efficiency-based products and services as a fully integrated energy company and Retail Electric Provider (REP). Zenergy is a public company, fully reporting to the SEC and currently trading on the OTCPK, a venture market designed for early stage and developing U.S. and international companies. To learn more, visit www.zenergybrands.com or www.whatiszenergy.com, and follow the Company on the following social networks:

Facebook: Zenergy Brands

Twitter: @ZenergyBrands 

Instagram: @ZenergyBrands

YouTube: Zenergy Brands

FORWARD-LOOKING STATEMENTS

This press release may contain forward-looking statements. The words "believe," "expect," "should," "intend," "estimate," "projects," variations of such words and similar expressions identify forward-looking statements, but their absence does not mean that a statement is not a forward-looking statement. These forward-looking statements are based upon the Company's current expectations and are subject to some risks, uncertainties, and assumptions. The Company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. Among the critical factors that could cause actual results to differ significantly from those expressed or implied by such forward-looking statements are risks that are detailed in the Company's filings, which are on file at www.OTCmarkets.com



INVESTORS & MEDIA CONTACT:   

Email: investors@zenergybrands.com      

Phone: (469) 228-1400   

Fax: (469) 626-5101

Source: Zenergy Brand, Inc.

This article appears in: News Headlines

Referenced Stocks: ZNGY










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