Zone Frontier sells legacy CleanCore cleaning products unit to Sanzonate for $3.35 million note
ZONE•Zone Frontier sold its legacy aqueous ozone cleaning products business, including CleanCore Global, to Sanzonate for a secured $3.35 million note, up to $2.25 million in cash earnouts and a 5% equity interest; the deal removes about $3 million in annual cash burn.
1. Sale terms
Zone Frontier sold its legacy aqueous ozone cleaning products business, including CleanCore Global, to Sanzonate Holdings, controlled by former CEO Clayton Adams. Consideration includes a secured $3.35 million promissory note at 6% interest, scheduled for repayment over 18 months, and up to $2.25 million in cash earnouts tied to Sanzonate equity financings at pre-money valuations of $10 million, $17.5 million and $25 million.
2. Cash burn impact
Zone Frontier received a 5% equity interest in Sanzonate at closing, with tag-along rights. About $844,000 in cash transferred with the business at closing, and the transaction removes about $3 million of annual cash burn.
