Zaio Corporation

Zaio Corporation

August 28, 2013 19:00 ET

Zaio Corporation Announces Over Subscription of Private Placement

CALGARY, ALBERTA--(Marketwired - Aug. 28, 2013) -


Zaio Corporation (TSX VENTURE:ZAO) ("Zaio" or the "Company") is pleased to announce today that it has completed an oversubscribed private placement of its previously announced secured, redeemable convertible debentures (each, a "Debenture"). The Company raised gross proceeds of $1,055,000 in the final tranche, for gross total proceeds of $3,498,000, including full exercise of the over-allotment option.

"We are very pleased with the overwhelming interest in our company, with strong interest and support from several new institutions and high net worth individuals and existing investors. The interest in this private placement demonstrates a high level of confidence regarding Zaio's growth trajectory." said David King, Zaio President and CEO. "Zaio continues to gain significant traction in the marketplace with an increasing number of customer orders being received and processed daily in an ever increasing geographic footprint of over 51 million homes in the proprietary Zaio database. This new capital positions Zaio to monetize the massive opportunity for highly accurate real estate valuations in the United States."

Each Debenture is convertible into units (each, a "Unit") of the Company at a price of $0.12 per Unit at any time prior to maturity (being May 9, 2017) or redemption. Each Unit consists of one common share ("Common Share") of the Company and one Common Share purchase warrant ("Warrant"). Each Warrant is exercisable to acquire one Common Share at a price of $0.15 per Common Share for a period of 24 months from the date of issuance of the Warrant. The Debentures will accrue interest at a rate of 10% per annum payable semi-annually in Common Shares or cash, at the option of the holder. Debentures will be secured against all of the Company's property and assets and will be registered in all of the jurisdictions in which the Company carries on business.

The Company may, at any time prior to maturity and upon giving notice, prepay the Debentures in full or in part, by paying the holders thereof the outstanding principal amount plus a 10% premium on the outstanding principal amount as a bonus for early redemption, together with all accrued and unpaid interest. Debenture holders will continue to have the ability to convert their Debentures until the date specified for redemption.

MGI Securities Inc. (the "Agent") acted as lead agent for the private placement. In consideration for its services, the Agent and its sub-agents received an aggregate on this tranche of $44,000 in commissions and work fees. In addition, the Agent and its sub-agents were issued an aggregate on this tranche of 1,098,958 broker warrants, each broker warrant being exercisable to acquire a broker unit at a price of $0.12 per Unit for a period of 48 months from the date of issuance of the broker warrants. Each broker unit will consist of one Common Share of the Company and one Warrant. Each whole Warrant will be exercisable to acquire one Common Share of the Company at a price of $0.15 per Common Share for a period of 24 months from the date of issuance of the Warrants.

All of the securities issued under the private placement are subject to a four-month hold period from the date of issuance. The Company also announced that its second quarter financial statements will be posted to SEDAR on August 29, 2013.

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About Zaio Corporation

Zaio provides customers in the property valuation, underwriting and lending industries with real-time access to certified appraisal reports from the Company's patented database of proactively maintained residential property valuations prepared by licensed appraisers across the United States. The Company's products are available in the United States through its Licensee, Zone Data Systems LLC.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities of the Company will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") and may not be offered or sold within the United States or to, or for the account or benefit of U.S. persons except in certain transactions exempt from the registration requirements of the U.S. Securities Act.

This press release contains forward looking statements. The Company believes that the expectations reflected in this news release are reasonable but actual results may be affected by a variety of variables and may be materially different from the results or events predicted in the forward-looking statements. Readers are therefore cautioned not to place undue reliance on these forward-looking statements. In evaluating forward-looking statements readers should consider the risk factors which could cause actual results or events to differ materially from those indicated by such forward-looking statements. These forward-looking statements are made as of the date hereof and unless otherwise required by applicable securities laws, the Company does not intend nor does it undertake any obligation to update or revise any forward-looking statements.

Neither the TSXV nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Zaio Corporation
    David King
    President & CEO
    (403) 984-ZAIO