Zone Frontier Sells Cleaning Products Business to Focus on AI Infrastructure
Zone Frontier Inc. (NYSE AMERICAN: ZONE) has sold its legacy aqueous ozone cleaning products business, including CleanCore Global Limited, to Sanzonate Holdings LLC for $3.35 million in a secured promissory note and potential additional earnout payments of up to $2.25 million. The transaction eliminates approximately $3 million per year in cash burn from the underperforming segment that lost $18 million in FY26, allowing Zone Frontier to focus entirely on its AI infrastructure platform for rural and industrial America. The sale also includes a 5% equity stake in Sanzonate with tag-along rights. The note's face value significantly exceeds an independent valuation of the business by Newbridge Securities Corporation, which placed it at around $1.72 million excluding cash. Zone Frontier previously sold its digital assets for approximately $33 million and closed its Treasury segment after a $156 million loss in FY26. The transaction is structured to provide ongoing financial upside if Sanzonate succeeds under new ownership, while freeing up capital and management focus for the company's core AI infrastructure strategy.
Topics: AI infrastructure business sale capital preservation deleveraging