Zaio Announces Closing of Initial Tranche of Financing for $1.5 Million and AGM Results

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

For further information: For further information, visit www.zaio.com or contact: Shane Copeland, CEO, Zaio Corporation, 760-208-6460, scopeland@zaio.com; Babak Pedram, Investor Relations, Virtus Advisory Group Inc., 416-644-5081, bpedram@virtusadvisory.com


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