HzO Completes $7 Million Capital Raise
ZAGG Inc. to Provide Marketing and Distribution Services to HzO
SALT LAKE CITY--(BUSINESS WIRE)--
ZAGG Inc. (NASDAQ: ZAGG)
announces the closing of a $7 million Series B Preferred Stock financing
for HzO, Inc. ("HzO"), a Utah-based company with WaterBlock™ technology
for consumer and industrial electronic assemblies.
"I have been a believer in HzO technology since I was first introduced
to it, and I felt it could be a global success," said Robert G. Pedersen
II, CEO and President of ZAGG. "This financing advances the
commercialization of the technology, which we have continued to develop
since acquiring it. I believe ZAGG will benefit from this technology
long into the future with its equity stake in HzO." During November
2010, ZAGG Inc. acquired from Northwest Maritime Institute ("NMI") a
majority stake in HzO with the vision of using the HzO technology to
protect mobile electronics.
HzO entered into a Series B Stock Purchase Agreement pursuant to which
HzO issued shares of its newly designated Series B Preferred Stock to
Harris & Harris Group, Prudence Holdings and Pike Capital Partners for
cash of $2.5 million. Upon HzO achieving certain milestones, the
investors will invest up to an additional $4.5 million in cash for
additional shares of Series B Preferred Stock. In addition, the new
investor syndicate, with an additional investment from ZAGG and three
ZAGG executives, acquired the remaining interest in HzO still held by
NMI, allowing the new HzO investors, ZAGG executives and ZAGG to own
100% of the Company. ZAGG will continue to be the largest equity owner
In addition, ZAGG and HzO entered into a distribution and marketing
agreement, pursuant to which ZAGG will provide marketing and
distribution services for HzO products. Under the terms of the
distribution agreement, ZAGG will assist HzO in rolling out its first
HzO-coated consumer electronic devices.
The HzO technology is a unique process that creates a nanoscale coating
that protects electronics against damage caused by exposure to fluids,
which is the leading cause of lost functionality in electronics. The
coating is transparent and can be applied to a variety of surfaces
including plastic, metal and glass. In addition to water repellence, the
coating can repel many oils, synthetic fluids, hazardous materials, dust
and dirt. HzO intends to integrate its technology in multiple industries
including automotive, first responder devices, military devices and
vehicles, solar energy, and industrial applications.
About ZAGG, Inc.
ZAGG® is a market leader in providing innovative consumer products like
films, skins, audio and power solutions that protect, personalize, and
enhance the mobile experience. ZAGG's products are distributed worldwide
with popular, award-winning brands such as the invisibleSHIELD®,
ZAGGskins™, ZAGGsparq™, ZAGGbuds™ and ZAGG LEATHERskins™. In June 2011,
ZAGG acquired iFrogz, a privately owned company that develops and
markets mobile device cases and audio products in the value-priced,
lifestyle sector, with an emphasis on design and creativity. The
invisibleSHIELD, ZAGG's patented flagship product, is the original thin
film full-body protector, and is available in over 5,000 precision
pre-cut designs with a lifetime replacement warranty. ZAGG products are
available online at ZAGG.com and in most major retailers. For more
product or investor information please visit the Company's web site at www.ZAGG.com.
About Harris and Harris Group
Harris & Harris Group is a publicly traded venture capital company that
invests in nanotechnology and microsystems. Detailed information about
Harris & Harris Group and its holdings can be found on its website at www.HHVC.com.
About Prudence Holdings, Inc.
Prudence Holdings, Inc. is a private holding company that seeks
opportunistic investments with long term value across industry sectors
and capital structures and makes both control and non-control
investments. Prudence Holdings, and its affiliated entities, focuses on
partnering with experienced management teams, identifying specific
market niches and reacting quickly to special situations. The principals
at Prudence Holdings have made prior investments in the consumer,
retail, automotive, industrial and energy sectors.
About Pike Capital Partners
Pike Capital Partners, LP is a private investment partnership based in
New York City. The fund makes investments in both public and private
markets, across all industries.
Genesis Select Corp.
Amber Roberts, 212-302-5964
Nathan Nelson, 801-263-0699 ext. 107
Source: ZAGG Inc.
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