CALGARY, Dec. 20, 2013 /CNW/ - Zaio Corporation (TSX-V:ZAO), ("Zaio" or
"the Company"), is pleased to announce that it has entered into a
definitive agreement to acquire the National License Agreement ("NLA")
from Zone Data Systems LLC. ("ZDS") for 13.6 million common shares of
Zaio and 13.6 million common share purchase warrants. The Company had
previously announced the entering into of a letter of intent to acquire
the NLA on July 5, 2013.
"We are delighted to see the teams come together with aligned interests
as shareholders of Zaio," said David King President and CEO of Zaio
Corporation. "With the acquisition of this legacy agreement, Zaio can
now record all of the revenue related to the sale of its appraisal and
valuation products directly and regain operational control of the US
Territory related to administrative and sales functions."
The completion of the NLA acquisition, will simplify the role of the
Company's appraisers, making them more efficient to build the database.
"The agreement allows the ZDS appraisers to focus on customer service
and delivery of valuation products," said Randy Kass Managing Committee
Chairman of ZDS. "Both of these objectives, in addition to increased
coverage of residential properties in the US Territory are now
significantly enhanced by the surge in new software tools being
provided by Zaio. Coming together as one entity will provide vastly
increased synergy and operational capacity." Under Zaio's control, a
set of services, processes and guidelines will be installed and
enforced to create consistency and structure for all appraisers across
the Country. The net result will be a faster and more effective service
offering across Zaio's entire platform.
The National License Agreement was signed in 2009, and provided for ZDS
to manage revenue and collect 50% of net profits for all sales in the
US from Zaio's technology and data platform.
The completion of the NLA acquisition is subject to closing conditions
and all required regulatory approvals, including approval by the TSX
Venture Exchange and Zaio shareholder approval, if applicable. In the
event that shareholder approval is required, it is anticipated that the
shareholder meeting will be scheduled to be held early in the first
quarter of 2014.
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.
Certain information in this press release is forward-looking within the
meaning of Canadian securities laws as it relates to anticipated events
and strategies. When used in this context, words such as will,
anticipate, believe, plan, mandated, intend, target, and expect or
similar words suggest future outcomes.
Forward-looking information in this press release includes, among other
things, information relating to: (i) the closing of the NLA
acquisition; (ii) the ability of the Company to obtain the approval of
the TSX Venture Exchange; and (iii) the ability of the Company to
obtain shareholder approval for the transaction.
These statements are based on certain assumptions and analyses made by
the Company in light of its experience, current conditions and expected
future developments and other factors it believes are appropriate. The
material factors and assumptions used to develop these forward-looking
statements include, but are not limited to: (i) the ability of the
Company to close the NLA acquisition as contemplated; (ii) the ability
of the Company to obtain the approval of the TSX Venture Exchange for
the issuance of common shares and common share purchase warrants as
anticipated; and (iii) the ability of the Company to obtain shareholder
approval for the transaction.
Whether actual results, performance or achievements will conform to the
Company's expectations and predictions is subject to a number of known
and unknown risks and uncertainties which could cause actual results
and experience to differ materially from the Company's expectations.
Such risks and uncertainties include, but are not limited to, risks
relating to: (i) whether the NLA acquisition will be completed or close
as expected; (ii) whether the Company is able to obtain the approval of
the TSX Venture Exchange for the issuance of the securities as
consideration for the NLA acquisition; and (iii) whether the
shareholders of the Company will approve the NLA acquisition. If any
such risks actually occur, they could materially adversely affect the
Company's business, financial condition or results of operations. In
that case the trading price of the Company's common shares could
decline, perhaps materially.
Readers are cautioned not to place undue reliance on any such
forward-looking statements, which speak only as of the date made.
Forward-looking statements are provided for the purpose of providing
information about management's current expectations, and plans relating
to the future. Readers are cautioned that such information may not be
appropriate for other purposes. Zaio does not undertake or accept any
obligation or undertaking to release publicly any updates or revisions
to any forward-looking statements to reflect any change in Zaio's
expectations or any change in events, conditions or circumstances on
which any such statement is based, except as required by law.
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. Visit the company online at zaio.com.
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
For further information:
visit zaio.com or contact:
President & CEO
Virtus Advisory Group Inc.