Zone Frontier sold its legacy aqueous ozone cleaning products business, including wholly owned subsidiary CleanCore Global Limited, to Sanzonate Holdings.
Sanzonate is controlled by Clayton Adams, Zone Frontier’s former CEO and current board member.
The transaction completes Zone Frontier’s transition toward operating as a pure-play AI infrastructure developer.
The legacy cleaning business consumed approximately $3 million of cash annually and recorded an $18 million loss during fiscal 2026.
Zone also previously sold its remaining digital assets for approximately $33 million and closed its Treasury segment, which lost $156 million during the prior year.
Under the cleaning products transaction, Zone received a secured promissory note with a face value of $3.35 million bearing 6% interest.
The note is scheduled to be paid over 18 months.
Zone could also receive up to $2.25 million of additional cash earnout payments tied to future Sanzonate equity financings.
The company retained a 5% equity interest in Sanzonate with tag-along rights.
Approximately $844,000 of cash was transferred to Sanzonate with the business to support working capital.
Zone said an independent fairness opinion from Newbridge Securities valued the legacy business, excluding cash, at approximately $1.72 million.
If all earnout milestones are achieved, Zone could receive approximately $5.6 million in potential cash payments before accounting for the retained equity interest.
KEY QUOTE:
“The CleanCore business has promising technology, but the business does not fit our core strategy anymore. This sale eliminates an ongoing cash drain that pulled management and Board attention away from our core AI infrastructure strategy. This transaction completes our transition into critical AI infrastructure as Zone Frontier.”
Tyler Hassen, Chief Executive Officer of Zone Frontier
