Z Trim Holdings (OTC: ZTHO), manufacturer of multifunctional ingredients used in food production, today announced it received $3.326 million in funding from New York-based investment firm Brightline Ventures. The Company sold Brightline 665,339 shares of convertible Preferred Series II Stock with an issue price of $5.00 per share, and 4,990,046 warrants with an exercise price of $1.50 per share. The Preferred Stock converts at a price of $1.00 per share into 3,326,697 shares of the Company's Common Stock, exclusive of an 8% dividend, which is also convertible into Common Stock. Brightline's Managing Partner, Ed Smith said, "We are excited to provide Z Trim with the capital it required to begin realizing the potential of its food ingredient platform. We are also pleased to have a number of strategic former senior food industry executives as part of our investment group."
"We are extremely grateful to Brightline for helping us reach this turning point in our Company's history," stated Z Trim Holdings President, Steve Cohen. "For the first time, we believe we have sufficient working capital to fund operations, reach our production and sales goals, expand our customer base and product lines, and increase shareholder value. We feel confident that this funding will further solidify the confidence of food manufacturers in our ability to supply them with Z Trim multifunctional ingredients for years to come."
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