CALGARY, May 30, 2016 /CNW/ - Zaio Corporation (TSXV: ZAO) (the "Company" or "Zaio"), today announced its first quarter (Q1) financial results for the three months ended March 31, 2016.
"With just shy of $1.8 million dollars in revenue, it is clear that our vision for Zaio is beginning to come to fruition," said Shane Copeland, CEO of Zaio Corporation. "While still in the early stages of the strategy we outlined late last year, the Board and management team remain committed to capturing new market share and continuing to strengthen our relationship with our existing Government Sponsored Entity (GSE) client base. Whether it be through new partnerships, expanding our technology's capabilities, or further expanding into mortgage originator market, we are committed to capturing market share and capitalizing on the opportunities that are in front of us. Additionally, we are well on our way to simplifying our capital structure to ensure that Zaio has the working capital it needs going forward and to best serve the interest of shareholders."
- Total revenue was $1,790,041 for the three months ended March 31, 2016, compared to $64,480 for the same period in 2015.
- Total cost of sales for the three months ended March 31, 2016 was $982,334 compared to $nil for the same period in 2015. This figure has been recalculated to include direct costs such as remunerations, cost of operations and quality control employees, to more accurately reflect costs incurred in pursuit of revenue.
- Total operating expenses and other expenses were $2,927,302 for the three months ended March 31, 2016, compared to $6,624,002 for the same period in 2015.
- Net loss of $2,119,595 ($0.01 per share) for the three months ended March 31, 2016, compared to a net loss of $6,559,522 ($0.04 per share) for the same period in 2015.
- As at March 31, 2016, the Company's cash position was $171,995, compared to a cash position of $37,304 on December 31, 2015.
- During the quarter:
- The Company announced completion of debenture financing for gross proceeds of $1.58 million and executive employment matters
- The Company was awarded a contract to perform valuation services pertaining to non-performing asset loans for a U.S. government agency
- Subsequent to the quarter:
- The Company announced the private placement and early termination of warrants held by ZDS. ZDS agreed to terminate warrants to purchase 451,520 common shares of Zaio at a price of $0.11
- Zaio Corporation and the Keylink Family of Companies extend the Clarocity technology platform to include GSE asset inspections
- The Company was engaged by Morningstar Credit Ratings to perform rankings for residential vendors
About Zaio Corporation
Zaio Corporation was founded on the simple premise that current real estate valuation technologies lacked the information and technology necessary to deal with today's dynamic housing market. Zaio is disrupting an industry that was once thought not possible through its proprietary valuation solutions. Every day our 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 protected]; Phil Wazonek, President, COO, Zaio Corporation, 403-819-5449; [email protected]; Babak Pedram, Investor Relations, Virtus Advisory Group Inc., 416-644-5081, [email protected]