CALGARY, May 1, 2016 /CNW/ - Zaio Corporation (TSXV: ZAO) (the "Company" or "Zaio"), today announced its fourth quarter (Q4) financial results for the three and twelve month periods ended December 31, 2015.
"We are pleased with the progress in revenue growth that has been made in the latter half of the 2015 fiscal year as we continue to aggressively pursue building our client base and marketing the Valuation Vision platform across the U.S.," said Shane Copeland, CEO of Zaio Corporation. "Towards the end of last year, we received orders from several large organizations, both government institutions and private companies, to use our BPOMerge platform and we view this as reaffirmation that our product remains highly competitive in the appraisal industry. We have only begun to take advantage of the massive opportunity that exists in this market and expect to see orders more frequently and of higher volume as organizations continue to recognize the unique benefits from the BPOMerge platform."
- Total revenue was $1,488,566 for the three months ended December 31, 2015, compared to nil for the same period in 2014. The revenue in Q4 2015 increased by 32% compared to Q3 2015. Total revenue was $3,156,896 for the twelve months ended December 31, 2015, compared to nil for the same period in 2014.
- Net loss of $1,815,065 ($0.01 per share) for the three months ended December 31, 2015, compared to loss of $1,098,901 ($0.01 per share) for the same period in 2014. Net loss of $12,996,685 ($0.07 per share) for the twelve months ended December 31, 2015, compared to loss of $5,429,248 ($0.07 per share) for the same period in 2014.
- During the quarter:
- Expenses were significantly reduced effective end of November 2015, which will be fully reflected in Q1 2016.
- A top 10 U.S. national lender selected Valuation Vision's MarketValue Pro to replace its current BPO.
- Subsequent to the quarter:
- Zaio Corporation announced a contract with a U.S. government institution to perform valuation services on non-performing loans
- The Company completed a debenture financing for a gross amount of $1.585 million at a price of $1,000 per $1,000 principal amount of debenture. The debentures bear a 15% interest rate per annum payable in quarterly instalments in cash or common shares. The debentures expire on January 25, 2019
- As part of the debenture financing, the Company issued 4,905,000 common share purchase warrants ("Warrants") representing a total of three Warrants issued to each Subscriber for each $1.00 of principal amount of debentures. Each warrant entitles the holder to purchase one common share at a price of $0.11 exercisable for a period of 36 months after the date of issuance
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, share subscription and convertible debenture amendment and automatic conversion, which may include, but is not limited to, the approval of the TSX Venture Exchange, approval of the debentureholders and approval by the shareholders of Zaio. 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]