InvestmentJun 4, 2026, 04:12 PM
Z Squared Secures $50M Equity Forward Purchase Agreement
AI Summary
Z Squared Inc. entered into a $50 million committed equity forward purchase agreement with LucentHash / Data Part Capital to fund its expansion into AI infrastructure. This flexible financing will support acquisitions and site conversions, advancing the company towards its Phase 1 goal of 100 megawatts of AI-ready capacity. The agreement allows Z Squared to draw funds at its discretion, with shares priced at 95% of the 5-day volume-weighted average price and subject to a $5.00 initial floor price. Additionally, Z Squared announced a binding letter of intent to acquire Skycore Digital, which owns sites with up to 42 MW of potential capacity.
Key Highlights
- Z Squared secured a $50,000,000 committed equity forward purchase agreement.
- Funds will support AI infrastructure buildout, targeting 100 MW of AI-ready capacity.
- Company can draw $50,000 to $5,000,000 per draw, with 14 days between draws.
- Shares purchased at 95% of the 5-day volume-weighted average price (VWAP).
- Initial floor price for draws is $5.00 per share, with an absolute floor of $3.00.
- Purchaser has a 9-month lock-up and cannot short-sell for 18 months.
- Z Squared signed an LOI to acquire Skycore Digital, adding up to 42 MW potential capacity.
- A $500,000 commitment fee (1% of total) is payable in common stock.