Zone Frontier completed the sale of its aqueous ozone cleaning products business to Sanzonate Holdings LLC, an entity controlled by board member Clayton Adams. The company received a secured promissory note with a principal amount of $3.35 million bearing 6% interest, payable over 18 months, and a 5% membership interest in the buyer. Zone Frontier is entitled to up to $2.25 million in contingent earnout payments if the buyer achieves specific equity financing milestones. The transaction eliminates approximately $3 million in annual cash burn associated with the legacy segment. Zone Frontier operates in the AI critical infrastructure industry, developing data center campuses.
