TSX Venture Exchange Symbol: ZAO
CALGARY, Dec. 8 /CNW/ - Zaio Corporation ("Zaio" or the "Company") (TSX-V: ZAO) is pleased to report that it's new National License program is expected to launch next week with the signing of a National License Agreement for the United States. In May 2009 the Company announced the signing of a Letter of Intent with a group of appraisers who have since formed a US company named Zone Data Systems LLC ("ZDS"). ZDS is a new company formed by the affiliation of most appraisal firms that were initially licensed under Zaio's former business model. Approximately 200 appraisal firms have already joined ZDS to participate in Zaio's patent pending, appraiser-backed, residential valuation database and more are expected to join ZDS upon signing.
Zaio's previous business model required that Zaio issue and coordinate hundreds of individual license agreements with appraisal firms across the United States and conduct the day-to-day operations including marketing, negotiating, tracking and fulfilling the delivery of individual appraisal assignments. Under the previous business model, the Company retained 100% of net income after expenses, but the salaries and general administrative costs to Zaio were very high, creating undue risk to all stakeholders. In addition, the previous business model did not offer adequate managerial participation from the appraisal network, which management believes would have fostered higher-performance and facilitated the building of the Zaio vision being - "The world's first dynamic valuation database, built, backed and monitored by licensed local appraisers."
Under the new National License program, Zaio will license its software and intellectual property to ZDS for use in the United States only. ZDS is responsible for providing the marketing, tracking and data-to-day fulfillment of individual appraisal orders. ZDS's members will be responsible for directly managing the process. While the operational cost of the appraisal network shall be borne by ZDS, the members of ZDS will receive additional financial incentive as profits are to be shared on a 50/50 basis with Zaio.
Zaio directors and management believe the Company's new National License program makes the Company stronger and substantially leaner. The Company also feels that by giving it's licensee's directional control and additional earnings potential, the valuation database will be established and ready for market much quicker, enabling Zaio to potentially become cash flow positive sooner by decreasing its operational costs and increasing the speed of bringing the product to market.
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 (TM)" property rating system. Zaio and its network of premiere, local appraiser experts appraise entire cities, one home at a time from the street. 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 U.S. under the trading symbol "ZAOFF". For more company information, visit www.zaio.com.
Forward Looking Information
This press release contains statements that may constitute "forward-looking information" or "forward-looking statements" (collectively, "forward-looking information") within the meaning of applicable Canadian securities laws. This forward-looking information includes, among others, statements regarding business strategy, plans and other expectations, beliefs, goals, objectives, information and statements about possible future events. This press release contains forward-looking statements including estimates, plans, expectations, opinions, beliefs, forecasts, projections, guidance or other statements that are not statements of fact, including without limiting the generality of the foregoing, statements made regarding the new National Licensing program and the beliefs of management with respect to: (i) Zaio becoming substantially stronger and leaner under the new National License program; (ii) Zaio's database becoming "ready for market" quicker under the new National License program; and (iii) Zaio becoming cash flow positive sooner under the new National License program. Although Zaio believes that the expectations reflected in such forward-looking statements are reasonable, it cannot give any assurance that such expectations will prove to be correct. Results of Zaio's new national licensing program, database completion, roll out to the market and financial position may be affected by a variety of variables and risks such as availability of human and capital resources, competition, anticipated capital expenditures and financing thereof, timing of applications and approvals. As such the future plans and objectives of Zaio are forward-looking statements that involve risks and uncertainties and may be based on assumptions that could cause actual results to differ materially from those anticipated or implied in such statements. Zaio's forward-looking statements are expressly qualified in their entirety by this cautionary statement. Unless otherwise required by applicable securities laws, Zaio does not intend nor does it undertake any obligation to update or review any forward-looking statements to reflect subsequent information, events, results or circumstances or otherwise.
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.
SOURCE Zaio Corporation
For further information: For further information: Zaio Corporation, Bradley Stinson, CEO, (877) 318-0537; Rodney Mitton, CFO, (877) 318-0537; Stone Communication Services Limited, Brian Edelstein, Managing Director, (800) 336-9528, firstname.lastname@example.org