Zaio Corporation
TSX VENTURE : ZAO

Zaio Corporation

February 04, 2013 15:00 ET

Zaio Corporation Entering Into Bridge Loan

CALGARY, ALBERTA--(Marketwire - Feb. 4, 2013) -

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

Zaio Corporation (TSX VENTURE:ZAO) ("Zaio" or the "Company") announces today that it has entered into an agreement for the third tranche of a subordinated secured bridge loan (the "Bridge Loan") in the principal amount of $320,000 for an aggregate principal amount of $820,000. 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 $0.26 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 proceeds of the Bridge Loan will be used for working capital and general corporate purposes.

Unless permitted under securities legislation, the holders of the warrants must not trade the security before June 5, 2013.

For further information visit www.zaio.com.

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 TSXV, CNSX nor their 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