CALGARY, June 10, 2016 /CNW/ - Zaio Corporation (TSXV: ZAO) (the "Company" or "Zaio") today announced that holders of the debentures issued January 25, 2016 have elected to receive an aggregate of 546,309 common shares in lieu of cash as consideration for interest payments amounting to $85,770 due May 31, 2016.
Under the terms of the of the indenture dated January 25, 2016, holders may elect to receive settlement of quarterly interest payments in the equivalent common shares of the Company converted at the greater of the market price prescribed under the policies of the TSX Venture Exchange or the volume average trading price for the 5 trading days prior to the interest payment date. The conversion rate applicable to the May 31, 2016 interest rate payment is $0.157 per common share. Following the issuance, the Company will have 189,931,831 issued and outstanding shares.
"We view the decision to accept common shares in lieu of cash as a vote of confidence from our debenture holders who clearly believe in the future of our organization," said Phil Wazonek, President & COO of Zaio Corporation. "A massive opportunity lies ahead of us as we continue to capitalize on our existing infrastructure, taking advantage of it as well as finding new avenues to expand our services. Between the new contracts we have announced in the first half of this year, the partnerships we have developed and the recent infusion of working capital, it is clear to our debt holders that receiving common shares rather than cash payments is not only in the best interest of Zaio but also of themselves."
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 share issuance 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]