Company Reduces Debt and Monthly Cash Flow Requirements
SCOTTSDALE, AZ, Oct. 22 /CNW/ - Zaio Corporation (TSX-V: ZAO), a real
estate database and technology provider announced that James Kirchmeyer, who
serves as the Company's President and Board Member, has acquired certain
assets of the Company in a transaction valued at $3.2 million. Under the terms
of the agreement, Mr. Kirchmeyer will acquire assets which were originally
included in Zaio's purchase of Kirchmeyer & Associates and Real Info in July
2007. In connection with this sale, the Company will simultaneously enter into
a perpetual technology services agreement providing exclusive rights to
control and utilize these assets and resulting revenue. Zaio also retains the
right to re-acquire these assets, at its option, for the sum of $3.2 million
plus accrued interest.
"This transaction allows Zaio the ability to retire $3.2 million of debt
and monthly cash flow obligations, while concurrently preserving a core part
of our appraisal operations, complete property valuation solutions, and
critical client relationships," said Douglas Vincent, CEO. "We are pleased
that this transaction will reduce our capital requirements, while at the same
time providing the Company flexibility in managing its assets."
Separately the Company announced that it was selected as the recipient of
the annual "Fix-It Award" by Mortgage Technology Magazine. The prestigious
award is given for a technology tool providing an effective solution for a
particular industry problem. Zaio was chosen based on its patent-pending
GeoScore process to help eradicate fraudulent appraisals.
"This award is a real honor for the entire Zaio team and our network of
appraisers and Zone owners," said Kirchmeyer. "All of us at Zaio are committed
to transforming the appraisal process to add greater efficiency and more
reliability to the science of valuation. Industry recognition of our
accomplishments is very gratifying."
Zaio is a technology and database company. The Zaio network of appraisers
currently serves approximately 500 lenders with a variety of nationwide
appraisal services. Zaio maintains a secure database of 140 million properties
and its affiliated appraisers are now site verifying property data, photos and
appraisals of virtually every property in America. Zaio's network of local
appraiser experts appraise entire cities, one building at a time using a
proprietary GeoScore(TM) rating system. Zaio trades under the symbol "ZAO"
with additional information available under the symbol "ZAOFF".
For investors who would like to be added to the Zaio investor
distribution list or receive a copy of the 2007 Annual Report, please contact
Lisa Lyscio at email@example.com.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this press release. This press
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 Company's current
need to raise capital, which if available at all may not be available on terms
acceptable to the the Company, and the market constraints applicable to the
real estate industry in general and the overall economy in both Canada and the
United States. The Company believes that the expectations reflected in this
press 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 to reflect
subsequent information, events, results or circumstances or otherwise.
For further information:
For further information: Donald E. Kelly, Chief Communications Officer,
(202) 302-3870; Lisa Lyscio, Manager, Investor Relations, (480) 449-2606