Z Squared Signs LoI to Acquire Paradox Data
Z Squared has entered into a binding LoI to acquire majority membership interest in Paradox Data, a digital infrastructure company specializing in high-density, immersion-cooled compute for data-intensive workloads. Paradox's flagship development asset is the Union County Campus in El Dorado, Arkansas, a large-scale, next-generation data center site. The transaction is structured entirely in newly designated Series D Convertible Preferred Stock, with no cash consideration and no debt financing. Total consideration consists of Series D Convertible Preferred Stock with a $5M aggregate initial liquidation preference. Paradox will continue as a going concern with Z Squared as its majority member. The assets and rights to be vested in Paradox at closing include its technology, data, and intellectual property; an approximately ten-acre land parcel under a binding purchase contract; and approximately 8 MW of fully operational, energized power capacity. The company intends to pursue acceptance of an interconnection request for up to 50 MW of utility power. The transaction is subject to customary closing conditions. The Union County Campus in El Dorado, Arkansas is the company's next development target: a data center site that pairs an on-grid utility connection with an 8 MW live on-grid utility connection, and the company intends to develop a behind-the-meter generation campus designed to deliver up to 150 MW of continuous, industrial-grade firm power.
