CALGARY, Sept. 22, 2016 /CNW/ - Zaio Corporation (TSXV:
ZAO) (the "Company" or "Zaio") today announced that
it has closed its first tranche of the previously announced (see
August 31, 2016 press release)
$4 million Debt Facility
("Facility") provided by StableView Asset Management
("StableView") on behalf of managed accounts and funds with
gross proceeds of $1,500,000.
"This additional funding support from StableView Asset
Management will enable us to execute on our business plan and fuel
the growth of Zaio" said Shane
Copeland, CEO of Zaio Corporation.
Zaio issued an aggregate amount of $1.5
million in principal amount of debentures
("Debentures") at a price of $1,000 per $1,000
principal amount of Debenture. The Debentures will bear an interest
rate of 15% per annum payable quarterly in cash or in common shares
("Common Shares"), at the option of StableView, subject to a
reduction to 12% per annum if the Company's all debt ranking in
priority to the Debentures is fully repaid. The Debentures will
mature on September 21, 2019. At any
time on or after March 21, 2017, StableView may also upon
notice, require repayment of the outstanding Debentures together
with any accrued and/or unpaid interest. The Debentures have
been guaranteed by the Company's wholly-owned subsidiary, Valuation
Vision, Inc. (the "Guarantor"), and have been secured
against all of the Company's and the Guarantor's property, assets
and patents and will be registered in all of the jurisdictions in
which the Company and the Guarantor carry on business.
In addition, the Company issued 4,500,000 common share purchase
warrants ("Warrants"). Each Warrant entitles the holder
thereof to purchase one Common Share in the capital of the Company
at $0.11 per Common Share,
exercisable for a period of 36 months from the date of
issuance.
Under the terms of the Facility, Zaio paid StableView a
$150,000 facility administration fee,
by issue of $150,000 principal amount
of Debentures and 450,000 Warrants. Zaio also agreed to pay
StableView a fixed annual fee of $70,000, payable quarterly.
The proceeds from the Facility will be used for general
corporate purposes. The transaction is subject to the submission of
final documents and final approval of the TSX Venture Exchange.
In addition, Zaio is pleased to announce the following results
from its September 20, 2016 Annual
General Shareholder Meeting ("AGM"):
i)
|
Election of: Walter
Andri, Jim Boyle, Russell Bruemmer, Shane Copeland, Willem Gale,
Robert Gloer and Nick Tillema to the Board of Directors, receiving
not less than the 95% vote in favour of their election;
|
ii)
|
The reappointment of
KPMG as auditors of the Company; and
|
iii)
|
The approval of the
Company Stock Option Plan.
|
"We want to thank the shareholders who were able to attend our
AGM," said Shane Copeland, CEO of
Zaio Corporation. "I'd also like to welcome the newest
members of our board Nick Tillema
and Russell Bruemmer. They bring valuable expertise that
will help us leverage new opportunities in the U.S. finance
industry."
About Zaio Corporation
Zaio Corporation provides real estate valuation technologies to
deal with today's dynamic housing market through its proprietary
valuation solutions. Every day GSE, banking, and investor clients
rely on our proprietary solutions to fund loans and value assets.
At Zaio, our mission is to ensure that our solutions provide
businesses and consumers unparalleled insight into their real
estate assets. For more information, visit www.zaio.com.
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.
Forward-Looking Information
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. Such statements are subject to
risk factors associated with the real estate industry, the overall
economy in both Canada and
the United States. 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.
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)
SOURCE Zaio Corporation