ZK International Group's Subsidiary xSigma Corporation Signs LOI with a Leading European Software Developer to Develop Blockchain Applications

Rhea-AI Summary

ZK International Group Co., Ltd. (ZKIN) announced that its subsidiary, xSigma Corporation, has signed a letter of intent with Dentoro Alliance LP to sell 49% equity stake in xSigma. This partnership aims to leverage blockchain technology for enhancing logistics, IoT, infrastructure, and supply chain management solutions. The company plans to develop a research and development lab with top software developers to explore blockchain applications. ZK International, founded in 2018, specializes in high-performance stainless steel and carbon steel pipe products.

Positive

• Partnership with Dentoro could enhance xSigma's capabilities in logistics and blockchain applications.
• Formation of a research lab to attract top talent in blockchain technology,

Negative

• Dilution of equity with Dentoro acquiring 49% stake in xSigma could impact existing shareholder control.

WENZHOU, China, Nov. 9, 2020 /PRNewswire/ -- ZK International Group Co., Ltd. (ZKIN) ("ZK International" or the "Company"), today announced that its subsidiary, xSigma Corporation ("xSigma"), have signed a letter of intent ("LOI") with Dentoro Alliance LP ("Dentoro"). Pursuant to the LOI, Dentoro proposes to earn 49% of xSigma's equity interest and to form a partnership with xSigma to build solutions that would add value in logistics, IoT, infrastructure, and in Company's supply chain management. In the hopes of leveraging the ever evolving blockchain technologies being developed world-wide, the Company believes that Dentoro's experience could help the Company develop its own R&D Lab made up of world-class software developers. 

The Company's mission is to spearhead the adoption of decentralized technologies by researching, analyzing, and testing innovative concepts and use cases. By finding new ways to utilize the blockchain, xSigma will look at revolutionizing traditional industries and making financial tools more accessible. The goal is to build a product ecosystem that realizes the true potential of blockchain in promoting open access and financial inclusion world-wide. 

ZK International launched xSigma as a research and development lab back in 2018 to solve real-world infrastructure challenges. Its mandate was to explore new opportunities in smart contracts, supply chain management and other blockchain-based solutions.

The Company's Chairman, Mr. Huang stated, "the Company will look at recruiting the brightest minds from the blockchain arena to its xSigma research lab. The aim is to have the lab run by a world-class team of developers.  At xSigma we are excited about assembling a team that are on the leading edge of blockchain research and development that intersects decentralized finance, supply chain management, IoT, and infrastructure. We are planning on announcing new applications and solutions in the near future."

About ZK International Group Co., Ltd.

ZK International Group Co., Ltd. is a China-based designer, engineer, manufacturer, and supplier of patented high-performance stainless steel and carbon steel pipe products that require sophisticated water or gas pipeline systems. The Company owns 33 patents, 21 trademarks, 2 Technical Achievement Awards, and 10 National and Industry Standard Awards. ZK International is Quality Management System Certified (ISO9001), Environmental Management System Certified (ISO1401), and a National Industrial Stainless Steel Production Licensee that is focused on supplying steel piping for the multi-billion dollar industries of Gas and Water sectors.  ZK has supplied stainless steel pipelines for over 2,000 projects, including the Beijing National Airport, the "Water Cube", and "Bird's Nest", which were venues for the 2008 Beijing Olympics.  Emphasizing superior properties and durability of its steel piping, ZK International is providing a solution for the delivery of high quality, highly sustainable, environmentally sound drinkable water not only to the China market but also to international markets such as Europe, East Asia, and Southeast Asia.

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.

About XSigma Corporation

XSigma Corporation, is a wholly-owned subsidiary of ZK International Group Co., Ltd. Together with ZK International, has launched xSigma as a research and development lab back in 2018 to solve real-world infrastructure challenges. Its mandate was to explore new opportunities in smart contracts, supply chain management and other blockchain-based solutions.

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 guarantee 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.

Investor Contact:

Sherry Zheng 
Weitian Group LLC
Email: shunyu.zheng@weitian-ir.com 
Phone: +1 718-213-7386

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SOURCE ZK International Group Co., Ltd.

FAQ

What is the significance of ZK International Group's partnership with Dentoro Alliance LP?

The partnership allows Dentoro to acquire 49% of xSigma, enhancing capabilities in logistics and blockchain technology.

How will ZK International's subsidiary xSigma utilize blockchain technology?

xSigma aims to explore and develop solutions in logistics, IoT, and supply chain management using blockchain.

When was xSigma Corporation launched by ZK International?

xSigma was launched in 2018 as a research and development lab focused on solving infrastructure challenges.

What are ZK International's core products?

ZK International specializes in high-performance stainless steel and carbon steel pipe products for water and gas pipeline systems.

What is ZKIN's focus regarding financial technology?

ZKIN aims to promote financial inclusion through innovative blockchain solutions that enhance accessibility and transparency.