Zaio Corporation
CNSX : ZAO

Zaio Corporation

February 22, 2012 07:00 ET

Zaio Corporation Completes Initial Tranche of Private Placement

CALGARY, ALBERTA--(Marketwire - Feb. 22, 2012) -

THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Zaio Corporation (CNSX:ZAO) ("Zaio" or the "Company") announced today that it has completed the initial tranche of its previously announced private placement of units (the "Units"). Zaio issued an aggregate of 10,380,000 Units at a price of $0.10 per Unit for initial gross proceeds of $1,038,000. Each Unit was comprised of one common share (the "Common Share") in the capital of the Company and one common share purchase warrant (the "Warrant"). Each Warrant entitles the holder to purchase one Common Share at a price of $0.13 per share for a period of 24 months from the date of issuance of the Warrants.

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 of $83,040 in commissions, financial advisory fees and work fees (part of which was satisfied by way of the issuance to the Agent of 624,200 Units at a price of $0.10 per Unit). In addition, the Agent and its sub-agents were issued an aggregate of 830,400 broker warrants, each broker warrant being exercisable to acquire a Unit at a price of $0.10 per Unit for a period of 24 months from the date of issuance of the broker 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 is working with a number of strategic institutional investors to complete the second tranche of the financing, the closing of which will be announced shortly.

About Zaio

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.

For further information visit www.zaio.com

This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of the securities in any state in the United States or any other jurisdiction outside of Canada in which such offer, solicitation or sale would be unlawful. 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 and applicable securities laws.

This press release may contain forward-looking statements which may include plans, expectations, opinions, forecasts, projections or other statements that are not statements of fact, in particular comments relating to the closing of the second tranche of the Offering and use of proceeds. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it cannot give any assurance that such expectations will prove to be correct.

The Company believes that the expectations reflected in this news release are reasonable including closing of the second tranche of the Offering on the terms contemplated, but actual results may be affected by a variety of variables and risks such as, the inability to obtain subscriptions on the terms proposed, loss of market, changes in the equity markets in general, general economic conditions, timing of applications and approvals as well as risks and variables associated in general with the Company's industry. The Company has, in part, relied on information provided by third parties involved in the capital markets in order to develop its forward-looking statements and there is no assurance that the assumptions or information relied upon by the Company is correct, or will not be affected by events or circumstances beyond the control of the Company. 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. The Company's forward-looking statements are made as of the date hereof and are expressly qualified in their entirety be this cautionary statement. Unless otherwise required by applicable securities laws, the Company does not intend nor does it undertake any obligation to update or review any forward-looking statements to reflect subsequent information events, results or circumstances or otherwise.

Neither CNSX 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
    www.zaio.com

    Genoa Management Ltd.
    John Sadler
    (416) 594-9292