CALGARY, May 4, 2016 /CNW/ - Zaio Corporation (TSXV: ZAO) (the "Company" or "Zaio") today announces that it has closed the previously announced private placement with Zone Data System, LLC ("ZDS"). ZDS subscribed for 451,520 common shares of Zaio at CAD $0.11 per share for gross proceeds of CAD $49,667, following the previously announced surrender and early termination of warrants held by ZDS to purchase 13,600,000 of Zaio's common shares at $0.20 per share, otherwise expiring on February 4, 2017. The common shares will be subject to a four-month hold period and the proceeds will be used for general working capital purposes. This transaction is subject to the submission of final documentation and final approval of the TSX Venture Exchange.
"With the cooperation and dedication of ZDS, we have injected some additional working capital into our company," said Phil Wazonek, President and COO of Zaio Corporation. "We continue to remain committed to simplifying our capital structure using non-dilutive strategies that are in the best interest of shareholders as well as Zaio's long term growth prospects."
The Company is also pleased to announce that all matters voted on at the annual and special meeting held on April 25, 2016 (the "Meeting") received shareholder approval. At the Meeting, the shareholders of the Company approved resolutions including election of Phillip Wazonek, Walter Andri, Willem Galle, Robert Gloer, Jim Boyle, David King and Shane Copeland as directors of the Company, the appointment of KPMG LLP as the Company's auditor, the approval of the Company's Stock Option Plan and Restricted Share Unit Plan, proposed name change, share consolidation and share subdivision. In addition, the shareholders approved and ratified StableView Asset Management Inc. as a new "Control Person" of Zaio, as such term is applied under the policies of the TSX Venture Exchange.
The Company also announces that on May 3, 2016 the Board of Directors granted an aggregate of 6,060,320 stock options ("Options") to certain directors of the Company, exercisable at a price of $0.105. 3,030,160 of the options vest immediately upon issuance while the remaining 3,030,160 vest in four equal installments after periods of 6, 12, 18 and 24 months conditional upon and subject to the Company meeting performance targets to be formulated and determined prior to the date 6 months from the date hereof.
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.
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. Forward-looking information in this press release, includes, among other things, information relating to any applicable approvals required in order to complete the warrant surrender and share subscription which may include, but is not limited to, the approval of the TSX Venture Exchange. 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: visit www.zaio.com or contact: Shane Copeland, CEO, Zaio Corporation, 760-208-6460, email@example.com; Phil Wazonek, President & COO, Zaio Corporation, 403-819-5449, firstname.lastname@example.org; Babak Pedram, Investor Relations, Virtus Advisory Group Inc., 416-644-5081, email@example.com