Zaio Corporation

TSX VENTURE : ZAO


Zaio Corporation

December 24, 2012 18:53 ET

Zaio Corporation Entering Bridge Loan

CALGARY, ALBERTA--(Marketwire - Dec. 24, 2012) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Zaio Corporation (TSX VENTURE:ZAO) ("Zaio" or the "Company") announced today that it has entered into an agreement for the second tranche of a subordinated secured bridge loan (the "Bridge Loan") in the principal amount of $200,000 for an aggregate principal amount of $500,000. The Bridge Loan is for a term ending June 5, 2013. The Company will pay interest ("Interest") on the Bridge Loan at a rate of 1% per month payable at maturity. The Company will also pay a commitment fee ("Commitment Fee") to the lenders equal to 5% of the principal amount of the Bridge Loan and issue to the Lenders on a pro rata basis 100,000 common share purchase warrants for each $100,000 principal amount of loan. The warrants are exercisable at $0.28 per share for a term equal to the term of the loan. The Bridge Loan is secured against the all of the assets of the Company and subordinated to all senior indebtedness including the Company's convertible debenture. The Company has an over-allotment option to borrow an additional $500,000 under the Bridge Loan.

The proceeds of the Bridge Loan will be used for working capital and general corporate purposes.

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 news release shall not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction.

About Zaio

Zaio develops and maintains a site-verified database of photos, valuations and property information on virtually every residential property in entire cities, using a proprietary GeoScore™ property rating system. Zaio licenses its technology to networks of premiere, local appraiser experts who can then appraise and monitor values across entire cities, one home at a time from the street. The Company's products are available in the United States through its Licensee, Zone Data Systems LLC. Zaio is a public company that trades under the symbol "ZAO" on the TSX Venture Exchange in Canada. Zaio shares are also available in the US under the trading symbol "ZAOFF". For more company information, visit corporate.zaio.com.

This news release contains forward-looking statements which may include financial and business prospects, as well as statements regarding the Company's future plans, objectives or economic performance and financial outlooks including additional borrowings under the Bridge Loan and repayment of the Bridge Loan. Such statements are subject to risk factors associated with the real estate industry, the overall economy in both Canada and the United States and the Company having sufficient funds to repay the Bridge Loan at maturity.

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 TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) 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