A steep decline in share price continues to raise serious concerns, of what the future holds for Ecoark Holdings Inc (OTCMKTS:ZEST), set to be renamed Zest Technologies. A surge in short interest has seen the stock plummet from record highs of $7.20 to current lows of $1.61.Price ActionTrading volumes are at all-time lows an indication of waning investor confidence in the stock. While short interest pressure appears to have lost momentum in recent days, it will take a big development for the stock to bounce back from the current lows. ZEST Daily ChartInvestor’s confidence has already hit all-time lows, underscoring the fact that the stock remains susceptible to further declines. According to the chart above, the stock is currently flirting with a key support level, below which it could register a new 52-week low on the continuation of the long-term trend.For the stock to be considered a bounce back play, it will have to rise and close above the $2.10 a share handle, which happens to be a key resistance level.What Does Zest Holdings Do? Zest technologies cast itself as a diversified holding company, focused on delivering shareholder value. Founded in 2011, the company seeks to improve the agriculture and supply chain industries through innovative AgTech solutions.It currently offers a suite of proven solutions designed to ensure fresh delivery of food products and provide greater transparency for the fresh produce meat and seafood supply chains.The company has caught our attention on a string of new developments that could act as a needle in pushing the stock up from the current lows.Launch of New Professional ServiceZest Technologies has launched a new professional services offering, as it looks to strengthen its growth prospects in the $161 billion industry. The new service offering seeks to address three core areas that are critical to fresh food supply and reduce waste as well.
“By assessing all the variables that can impact delivered freshness across the supply chain, we’re able to provide organizations with the right strategies for creating the operational efficiencies necessary to improve product margin and sustainability by reducing food waste,” said Peter Mehring, CEO of Zest Labs.
A world leading retailer has already approached the company upon completion of a pilot program for improving food safety and reducing waste. The program is designed to improve the freshness of products sold to customers.Leveraging Emerging Technologies In addition, the agro-tech company is seeking to leverage the capabilities of emerging technologies such as blockchain and Internet of Things. The company plans to use the technologies to tackle industry obstacles and in the process improve food supply chain.According to Zest Technologies, blockchain and IoT-based sensors could play an important role in combating problems affecting supply chain of fresh produce.Business ProgressZest Technologies is increasingly targeting new clients for its line of products and solutions. The company has already inked deals with five growers and two retailers, paving way for the deployment of its Zest Fresh Solution.According to the Chief Executive Officer, they have begun testing with Hy-Vee, a leading retailer in Midwest, to further validate the Zest Fresh Solution.
“We continue to enhance our Zest Fresh solution and recently announced our integration of blockchain technology as a means to capture Zest Fresh true transparency data. The data reflects agricultural or protein product’s condition and history from field-to-shelf, incorporating track-and-trace, food safety, and freshness data that ensures delivered freshness to the retailer and consume,” said Mr. Rany May.
In addition to the agriculture opportunities, Zest Technologies solutions continue to elicit demand in the protein industry. The company plans to come up with ways that will pave way for the use of the Zest fresh solution in the beef, poultry, and seafood supply chain industries.Early this year, the company announced plans to acquire key assets for a beef processing operation. The facility is expected to generate substantial revenues on the utilization of the Zest Labs freshness management solution.Financial Highlights Zest Technologies generated revenues of $2.2 million for the fiscal quarter ended December 31, 2017. It ended the year with $2.2 million in cash and $1 million in certificates of deposit.In a bid to further strengthen the balance sheet, the agro-tech company has entered into definitive agreements with institutional investors, for the purchase of 2.5 million shares of the company’s common stock.Priced at $1.68 a share, the offering is set to generate $4.2 million in gross proceeds. Zest Technologies anticipates approximately $3.8 million in net proceeds from the offering.What Next For Zest TechnologiesRecent developments paint a completely different picture about Zest Technologies long-term prospects. Even though the stock is languishing at all-time lows, the company has made important strides as it looks to reinvigorate growth and strengthen revenue generating streams.That said, the stock needs to rise above the $2.10 mark if it is to be considered a bounce back play on trend reversal.Disclosure: We have no position in ZEST and have not been compensated for this article.
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