CALGARY, June 1, 2015 /CNW/ - Zaio Corporation (TSXV: ZAO) (the "Company" or "Zaio"), today announced its first quarter (Q1) financial results for the three month period ended March 31, 2015.
"While the amount we are able to book this quarter is small at $64,000, we are pleased to be able to begin to report revenue from our integrated operations on Zaio's books," said David King, President and CEO of Zaio Corporation. "The revenue we can book will increase immediately with the closing of Valuation Vision LLC asset purchase and then quickly ramp up and align to our pro forma guidance when we close Axis.
"We are seeing strong market acceptance and demand across our entire product line, including our innovative BPOMerge product," continued Mr. King. "As a result, we're gearing up operations team across all three companies to handle increased volume and demand."
- Total revenue was $64,480 for the three months ended March 31, 2015, compared to nil for the same period in 2014.
- Total expenses were $3,349,202 for the three month ended March 31, 2015, compared to $1,320,075 for the same period in 2014. Total expenses, excluding one-time costs of cancelling the ZDS agreement, were $1,717,202 for the three months ended March 31, 2015, compared to $1,350,504 for the same period in 2014 to scale technology and operations to handle volume growth.
- Net loss and comprehensive loss of $3,284,722 ($0.02 per share) for the three months ended March 31, 2015, compared to loss of $1,320,075 ($0.02 per share) for the same period in 2014. This loss includes a one-time cost of $1,632,000 to cancel the ZDS agreement and includes additional investments in operations and technology
- As at March 31, 2015, the Company's cash position was $2,613,145, compared to a cash position of $4,260,593 on December 31, 2014.
During the quarter the Company,
- received approval from the TSX Venture Exchange (the "Exchange") to terminate the National License Agreement with Zone Data Systems.
- added a US based CFO, Larry Stritch and a support team to help administer the US operations and complete the Axis transaction.
Subsequent to the quarter the Company,
- was awarded a multi-year national supplier agreement with one of the largest secondary market lenders in the United States.
- appointed Ron Love as its new Chief Financial Officer
- announced that its products became available on one of the largest valuation product marketplaces serving the U.S. banking industry.
- announced a one-time conversion opportunity for its debentureholders and to contemporaneously exercise their warrants.
The Company is also pleased to announce that the Exchange has approved a further extension of the outstanding share purchase warrants ("Warrants") issued as part of the Company's private placement of Units which closed in two tranches on February 21, 2012 and March 19, 2012. The expiry date of the Warrants (extended by the Company in February 2014 until June 30, 2015) has been extended until December 31, 2015. Following the share consolidation completed by the Company on June 22, 2012 on the basis of one post-consolidated common share for every four pre-consolidation common shares outstanding, the Warrants are exercisable at four Warrants for one common share at an exercise price of $0.52 per share. Pursuant to the policies of the Exchange, Warrants issued to brokers, agents or finders may not be amended. Insiders of the Corporation hold 1.49% of the Warrants.
The Warrants will now expire on December 31, 2015 at 5:00 p.m. (Calgary time). All other terms and conditions of the Warrants remain unchanged. The Corporation will deliver a Notice of Amendment reflecting the amended expiry date to the registered holders of the respective Warrants.
About Zaio Corporation
Zaio provides customers in the property valuation, underwriting and lending industries with real-time access to certified appraisal reports from the company's patented database of proactively maintained residential property evaluations prepared by licensed appraisers across the United States. Visit the company online at 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 does not constitute an offer to sell or a solicitation of an offer to buy and 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
Certain information in this press release is forward-looking within the meaning of Canadian securities laws as it relates to anticipated events and strategies. When used in this context, words such as will, anticipate, believe, plan, mandated, intend, target, and expect or similar words suggest future outcomes.
Forward-looking information in this press release, includes, among other things, information relating to: projected or profoma revenues which assumes the closing of the Valuation Vision transaction and the Axis transaction which events have not occurred and anticipated growth in customers and sales.
These statements are based on certain assumptions and analyses made by the Company in light of its experience, current conditions and expected future developments and other factors it believes are appropriate. The material factors and assumptions used to develop these forward-looking statements include, but are not limited to: (i) the accuracy of the revenues reported by Valuation Vision and Axis; (ii) the ability of the Company to realize such revenues in the event the Axis transaction is closed and the ability of Zaio to effectively integrate the combined entities; (iii) the ability of the Company to close of the Axis transaction.
Readers are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Forward-looking statements are provided for the purpose of providing information about management's current expectations, and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. Zaio does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in Zaio's expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law.
SOURCE Zaio Corporation
For further information: visit www.zaio.com or contact: David King, President & CEO, Zaio Corporation, [email protected]; Babak Pedram, Investor Relations, Virtus Advisory Group Inc., 416-644-5081, [email protected]