Z Squared closes $5 million all-stock purchase of Arkansas data center site
Z Squared completed its acquisition of Paradox Data, LLC on September 8, 2026, which holds the Union County Campus in El Dorado, Arkansas, with about 8.0 MW of existing interruptible grid power. The company paid with 5,000 shares of newly designated Series A Convertible Preferred Stock, with a stated value of $5,000,000, and issued no cash or debt for the closing. Shareholders should note the preferred stock's potential dilution, a related person transaction involving the Chief Technology Officer, and that Entergy's consent to transfer the power agreement has not been obtained.
Key points
- Closing date September 8, 2026; consideration was 5,000 Series A Preferred shares with a $5,000,000 stated value, convertible at $7.45 per common share
- Up to $20,000,000 more in preferred stock is payable on development milestones, none achieved; total potential consideration up to $25,000,000
- Chief Technology Officer Jeffery Harris holds an indirect minority interest in the seller and in Paradox Energy LLC; the Audit Committee and Board approved the deal
- Entergy Arkansas consent to assign the electric service agreement has not been obtained; the 150 MW target is not contracted or energized
The filing
Written by AI on Nov 9, 2026, 11:43 AM ET, from this filing only. Written later: this filing was briefed after the fact, when past filings were added to the site, so the brief may be read with hindsight; the filing itself is the record of what was known on September 14, 2026.
Briefs are written by AI from the filing text and can contain mistakes — open the filing before acting on anything. Impact (1-5) and tone are the AI's reading of the filing for shareholders, not a price forecast. Not investment advice.