CleanCore Solutions, Inc. (ZONE) Signs Definitive Agreement to Acquire Sanzonate Europe, the Largest Aqueous Ozone Product Distributor in Europe, Strengthening Financial Performance and Unlocking a Multi-Million Dollar Sales Pipeline

Core Insights - CleanCore Solutions, Inc. has announced a definitive agreement to acquire Sanzonate Europe Ltd., the largest distributor of aqueous ozone cleaning technologies in Europe, which is expected to generate immediate value and accelerate high-margin revenue growth [1][2][4] - The acquisition is anticipated to strengthen CleanCore's market position in Europe and support its overall global expansion without requiring a dilutive equity capital raise, thereby preserving shareholder value [1][5] Strategic Acquisition Details - The acquisition will provide CleanCore with direct control over Europe's largest aqueous ozone distribution network, enhancing operational efficiencies and securing long-term recurring revenue streams [4][6] - CleanCore expects to unlock a substantial multi-million-dollar sales pipeline, with an estimated future revenue growth potential of approximately $20+ million [2][6] - The transaction is structured to maximize capital efficiency, primarily financed through a seller-financed carryback note and earnout, ensuring a clean balance sheet post-transaction [6][7] Financial Highlights - Sanzonate currently has over 30 distribution partners and a net backlog of over $10 million, which will contribute to immediate revenue growth for CleanCore [6] - The acquisition includes approximately $500,000 in inventory and $450,000 in accounts receivable, with CleanCore not assuming any liabilities [6][7] - The financing terms include a cash payment of $600,000, a $625,000 promissory note due in two years at 10% interest, and annual earnout payments for five years totaling up to $1,250,000 [7] Market Position and Future Outlook - CleanCore aims to solidify its position as a global leader in sustainable cleaning solutions, capitalizing on Europe's focus on corporate sustainability and green initiatives [4][6] - The acquisition is expected to facilitate rapid scalability across Asia, South America, and other key international markets [6] - The combined strengths of CleanCore and Sanzonate are projected to enhance service efficiency and deliver innovative products to a developing market sector [5][6]