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TSX Venture Exchange Symbol: ZAO
CALGARY, June 28 /CNW/ - Zaio Corporation ("Zaio" or the "Company") announces that on June 28, 2010 it completed the second of a series of closings for a non-brokered private placement previously announced on April 25, 2010. The second closing placed 2,238,346 units (the "Units") at a price of $0.13 per Unit for gross proceeds of approximately $291,000 (the "Final Closing").
From the first closing and Final Closing (the "Closings"), Zaio has now placed 11,392,538 units (the "Units") at a price of $0.13 per Unit for gross proceeds of approximately $740,500.
Each Unit consisted of one (1) common share in the capital of the Company (the "Common Shares") and one (1) common share purchase warrant (a "Warrant"). Each Warrant entitles the holder to purchase one (1) Common Share of the Company at an exercise price of $0.23 for a period of eighteen (18) months from the Closing Date (the "Exercise Period"). At the option of the Company, the Exercise Period for the Warrants may be shortened from eighteen (18) months to thirty (30) days should the Common Shares trade at a price equal to or greater than $0.40 for thirty (30) consecutive trading days. In aggregate Finders' fees were paid to arm's length third parties of Zaio consisting of cash in the aggregate amount of $11,261.25 being 7% of the gross proceeds raised by the Finders and 86,625 Finders' compensation warrants (the "Finders' Warrants") were issued to the Finders being 7% of the number of Common Shares subscribed for through the Finders. The Finders' Warrants were issued on the same terms and conditions as the Warrants.
All the Common Shares, Warrants, Finders' Warrants, Common Shares issuable upon exercise of the Warrants and Common Shares issuable upon exercise of the Finders' Warrants are subject to a four month and one day hold period.
The proceeds of the Closings of the private placement will be used: (i) to re-introduce the Zaio Concept to the United States mortgage market; (ii) to pay finders' and legal fees; and (iii) for working capital and general corporate purposes in 2010.
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 offered securities mentioned in this news release 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.
This news release shall not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction.
TSX Venture Exchange Approval of Application to Amend Warrants
Zaio also wishes to announce that it has received approval from the TSX Venture Exchange ("TSX-V") to amend the 4,412,252 common share purchase warrants (the "October 2009 Warrants") issued on October 30, 2009 pursuant to the private placement.
The original terms of the October 2009 Warrants specified that each whole October 2009 Warrant was exercisable into one (1) Common Share of the Company at an exercise price of $0.25 expiring on October 30, 2010 (the "Original Exercise Period"). The Original Exercise Period of the October 2009 Warrants has been extended to October 30, 2011 (the "Revised Exercise Period"). All other terms of the October 2009 Warrants shall remain the same including the option of the Zaio to shorten the Revised Exercise Period for the October 2009 Warrants to thirty (30) days should the Common Shares trade at a price equal to or greater than $0.50 for five (5) consecutive trading days.
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 licenses its technology to networks of premiere, local appraiser experts who can then appraise and monitor values across entire cities, one home at a time from the street. The Company's products are available in the United States through its Licensee, Zone Data Systems LLC. 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 US under the trading symbol "ZAOFF". For more company information, visit corporate.zaio.com.
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, and 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. 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: Bradley Stinson, CEO, 1-877-318-0537; Rodney Mitton, CFO, 1-877-318-0537