CleanCore Seals $2.48 Million Sanzonate Deal, Unlocks $20 Million Sales Pipeline in Europe

CleanCore Solutions, Inc. (NYSE American: ZONE), a leading developer of aqueous ozone cleaning technology, has announced a significant partnership with Sanzonate, a European-based cleaning solutions provider. The deal, valued at $2.48 million, includes a $1.25 million earnout component, and is expected to unlock a $20 million sales pipeline in Europe for CleanCore.

The partnership involves the integration of CleanCore's patented aqueous ozone technology into Sanzonate's product portfolio, enabling the company to offer a more comprehensive range of eco-friendly cleaning solutions to its customers. This strategic move aligns with CleanCore's mission to eliminate harmful chemicals, reduce environmental impacts, and empower customers with cost-effective, sustainable solutions.



The deal with Sanzonate is expected to generate $1.5 million in revenue for CleanCore in the fourth quarter of 2024, contributing to a 75% sequential increase in sales compared to the third quarter of 2024. This revenue boost will also lead to an improvement in CleanCore's gross margins during the third quarter of 2024, as the company shifts towards a more direct sales model.

The partnership with Sanzonate is part of a larger $20 million sales pipeline in Europe, which is expected to be unlocked over time as CleanCore continues to secure new customers and increase adoption of its products. The company expects to be cash flow positive within the next 12 months, which will be facilitated by the revenue generated from this deal and other sales initiatives.

CleanCore's Chief Executive Officer, Clayton Adams, commented on the partnership, stating, "We are thrilled to partner with Sanzonate and expand our reach into the European market. This deal is a testament to the growing demand for our patented aqueous ozone technology and the value it brings to customers seeking sustainable and cost-effective cleaning solutions."

The partnership with Sanzonate brings several strategic advantages to CleanCore, including:

1. Long-term recurring revenue stream: The deal provides CleanCore with a long-term recurring revenue stream, securing a steady source of income that can be reinvested into the business to drive further expansion.
2. Market penetration: The partnership allows CleanCore to penetrate the European market, expanding its customer base and increasing its global presence.
3. Sustainability and market penetration: The integration of CleanCore's products into Sanzonate's portfolio drives sustainability across the European cleaning solutions market, showcasing the effectiveness of CleanCore's products in a large-scale, real-world setting.
4. Potential for additional partnerships: The success of the CleanCore-Sanzonate partnership may open doors to additional opportunities with other cleaning solutions providers in Europe, leading to increased market penetration and growth.

In conclusion, the partnership with Sanzonate is a significant milestone for CleanCore Solutions, unlocking a $20 million sales pipeline in Europe and bringing strategic advantages to the company. As CleanCore continues to expand its global presence and secure new partnerships, it remains well-positioned to capitalize on the growing demand for eco-friendly cleaning solutions.