Z Trim Holdings Announces Conclusion of Successful Warrant Exercise Program: Raises $2.195 Million
MUNDELEIN, Ill., March 12, 2013 /PRNewswire/ -- Z Trim Holdings, Inc. (OTC Markets: ZTHO), a bio-technology company providing value-added ingredients to a variety of industries, today announced that its recently-concluded warrant exercise program resulted in the exercise of 1,756,088 warrants into 1,756,088 shares of ZTHO common stock. The conversion of these warrants raised $2.195 million in additional capital for the Company. The warrant program, open to all holders of $1.50 warrants, allowed those warrant holders to exercise their warrants for a $1.25 strike price during the month of February 2013.
"The additional capital will permit Z Trim Holdings to continue to expand its sales and research efforts and allow us to build necessary levels of inventory, as our major growth in production and sales continues upward," said Steve Cohen, Z Trim Holdings' Chairman and CEO.
"More importantly, the successful exercise program was a resounding statement from our investors that they believe in our Company and what we are doing to build and expand our business across the food and industrial sectors," Cohen said. "They believe in us and we have a tremendous obligation to show them that their trust is well-placed."
Z Trim recently announced its first sale of industrial grade bio-fiber gum and that its sales in the first two months of 2013 were 51% greater than 2012.
ABOUT Z TRIM®
Z Trim Holdings, Inc. (www.ztrim.com) is a bio-technology company that owns existing, and has developed new, products and processes to make use of biomass for uses in the food and industrial markets. The Company's food division currently sells a line of products to the food industry that can help food manufacturers reduce their costs and help them solve many production problems. The Company's revolutionary technology provides value-added ingredients across virtually all food industry categories. The Company's all-natural products, among other things, help to reduce fat and calories, add fiber, provide shelf-stability, prevent oil migration, and add binding capacity – all without degrading the taste and texture of the final food products. Perhaps most significantly, Z Trim's products can help extend finished products, and thereby increase its customers' gross margins. The Company's industrial division, opened in 2012, plans to sell eco-friendly ingredients to oil drilling, hydraulic fracturing, petroleum coke, steel/aluminum, paper and other industries. The Company's industrial ingredients are highly functional in applications for adhesives, binders, viscofiers and emulsifiers.
Forward-Looking Statements and Risk Factors
Certain statements in this press release are "forward−looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements involve a number of risks, uncertainties and other factors that could cause actual results, performance or achievements of Z Trim Holdings to be materially different from any future results, performance or achievements expressed or implied by these forward−looking statements. Other factors, which could materially affect such forward−looking statements, can be found in our filings with the Securities and Exchange Commission at www.sec.gov, including risk factors relating to our history of operating losses, that our auditors have expressed substantial doubt regarding our ability to continue as a going concern, the fact that we may dilute existing shareholders through additional stock issuances, and our reliance on our intellectual property. Investors, potential investors and other readers are urged to consider these factors carefully in evaluating the forward−looking statements and are cautioned not to place undue reliance on such forward−looking statements. The forward−looking statements made herein are only made as of the date of this press release and we undertake no obligation to publicly update such forward−looking statements to reflect subsequent events or circumstances.
SOURCE Z Trim Holdings, Inc.