Randy May long worked in retail but said he has always been a "serial entrepreneur."
So when the former Wal-Mart Stores Inc. divisional manager began planning for the next phase of his career after 15 years with the world's largest retailer, he wanted to tap into his entrepreneurial passion in ways that could affect the retail industry.
"I didn't necessarily want to find a widget and sell," May said. "It was more about, 'How can we do something meaningful and do it in a way and solve what I consider big problems?'"
What started as small startups more than 10 years ago has since evolved into Ecoark Holdings Inc., which includes a portfolio of businesses that provide technology and services designed to make companies more sustainable without compromising profitability.
Rogers-based Ecoark Holdings officially formed earlier this year after May's company Ecoark Inc. -- which he founded in 2011 -- raised about $17 million in capital through the acquisition of publicly traded Magnolia Solar Inc. in April.
The acquisition continued the firm's growth under May and helped fulfill his five-year goal of transforming Ecoark into a publicly traded company. Ecoark completed its initial public offering earlier this year, and shares of company stock are currently trading on the over-the-counter market.
"It's a natural progression for a private company that would have an aggressive growth strategy to access a public market," May said. "Once you're able to do that, you have more eyes on the company, and the ability to scale both domestically and internationally is realized at an accelerated rate."
Ecoark Holdings consists of four subsidiaries: Pioneer Products, Intelleflex, Magnolia Solar and Eco3d. The portfolio of companies drives sustainability across numerous fields like retail, agriculture and food services, construction, waste management, recyclables and nanotechnology.
Pioneer Products -- for example -- turns plastic reclaimed from a retailer's waste into new consumer products. The company's 45-gallon garbage cans are produced from reclaimed plastic and sold in 3,600 Wal-Mart stores around the country, according to Ecoark.
Executives also are optimistic about the financial potential for Intelleflex, which has created patented technology intended to reduce fresh food waste by tracking items like produce throughout the supply chain.
JoAnne Berkenkamp, a senior advocate for food and agriculture at the Natural Resources Defense Council, said earlier this year that as much as 40 percent of the U.S. food supply is never eaten and that the economic value of that wasted food is $218 billion annually.
May believes Intelleflex's cloud-based platform, called Zest Fresh, will make a difference on the retailer's end. The technology is designed to allow for more visibility throughout the supply chain.
"One of what we think is the largest contributors to that waste is the treatment of the product between harvest and the first 72 hours," May said. "So if you can track through the supply chain and provide transparency from harvest to the fork, you have a better chance to cut down on that waste."
Ecoark r̶e̶c̶e̶i̶v̶e̶d̶ ̶a̶p̶p̶r̶o̶v̶a̶l̶ ̶f̶r̶o̶m̶ ̶t̶h̶e̶ ̶U̶.̶S̶.̶ ̶S̶e̶c̶u̶r̶i̶t̶i̶e̶s̶ ̶a̶n̶d̶ ̶E̶x̶c̶h̶a̶n̶g̶e̶ ̶C̶o̶m̶m̶i̶s̶s̶i̶o̶n submitted an application to be uplifted from over-the-counter trading to the Nasdaq earlier this year, but has since put the application on hold*. But the company has since said it had withdrawn the application. The move to the larger market will be delayed, which C̶h̶i̶e̶f̶ ̶F̶i̶n̶a̶n̶c̶i̶a̶l̶ ̶O̶f̶f̶i̶c̶e̶r Vice President of Investor Relations Brad Hoagland described as a decision based on "efficiency."
Ecoark announced at the same time that it had completed a shelf registration of stock with the SEC, which will allow it to raise an additional $80 million over time.
"It is our goal to be the best and strongest company we can be for both our customers and our investors," Hoagland said in an email. "We are devoting our resources into fortifying a product that we believe will be a key revenue driver for us once it is commercially available."
The company, Hoagland said, plans to continue strengthening operational needs to meet the anticipated demand of the Intelleflex technology. Ecoark also is ramping up its hardware and hiring for the firm, which May said has about 100 employees throughout its subsidiaries.
May also said the company would continue looking for additional growth through acquisitions as long as it complements the company's charter of "scarcity, renewables and sustainability."
"Companies that are growing rapidly usually need financing," said Andy Terry, a finance professor at the University of Arkansas at Little Rock. Going public "raises a lot of financing, but if the growth is coming through acquisition then this also creates a currency that can be used. I can issue shares of my stock to buy another company or trade shares of my stock for their shares."
In its registration filing with the SEC, Ecoark said it has incurred operating losses since its inception. It includes a reported net loss of $14.2 million and $10.4 million in 2014 and 2015, respectively. The company also said it had a $7.8 million operating loss for the first six months of 2016 with losses expected to continue through at least the rest of the fiscal year.
But May is confident that the continued work to produce and develop sustainability solutions will lead to "really good things" for Ecoark.
May said the big thing is that each company act independent. "And, we have an aggressive growth strategy for all of them," he said. "Some of the main focus is that we know each one of them have tremendous upside. ... We have a tremendous amount of growth opportunity in every category."
SundayMonday Business on 10/09/2016
*CORRECTION: Ecoark Holdings Inc. submitted an application to be uplisted from over-the-counter trading to the Nasdaq earlier this year, but has since put the application on hold. Brad Hoagland is the company’s vice president of investor relations. His title and the application process were described incorrectly in Sunday’s editions.