Zaio, Valuation Vision and Axis Collectively Generated Over $2,000,000 in Revenue During the Month of February
CALGARY, March 17, 2014 /CNW/ - Zaio Corporation (TSX-V:ZAO), ("Zaio" or "the Company"), is pleased to provide a status update on the progress made in the previously announced transactions to acquire Valuation Vision and Axis Appraisal Management Solutions:
On September 9, 2013, Zaio announced that it had signed a definitive agreement to purchase a majority ownership position of 60% in the privately held Valuation Vision LLC., located in Carlsbad, CA. The investment was valued at US$1.55 million, payable in two cash instalments over six months and up to US$500,000 in secured short-term working capital loans to facilitate Valuation Vision's growth trajectory. On February 26, 2014, Zaio announced that it had received results of Valuation Visions' audited financial statements up to June 30, 2013, and it had closed the investment in escrow. The Company also announced that it had entered into an agreement to complete the acquisition of Valuation Vision through the purchase the remaining 40% of Valuation Vision from management. The consideration for this transaction is 8,000,000 common shares of Zaio, also closed in escrow, with the benefit of completely aligning Valuation Vision's management with ZAIO's value. Due to additional regulatory requirements, Valuation Vision is currently completing their audited IFRS financial statements for the fiscal year ended December 31, 2013.
On March 3, 2014, Zaio announced that it had entered into a Letter of Intent agreement (LOI) to acquire 100% of Axis Appraisal Management Solutions. Consideration for this transaction is $3.25 million in cash and 17 million common shares of Zaio. The Company is currently performing final due diligence on Axis and expects to complete and sign the definitive transaction agreement by April 15, 2014. Once the definitive agreement is signed, auditors will be engaged to conduct a multi-year IFRS standards audit on Axis to meet Zaio's regulatory and public company disclosure requirements.
Upon closing of these acquisitions, Zaio will have a nationwide network of over 5,000 appraisers, 100,000 realtors, a highly skilled and experienced staff and management, all powered by internally developed and owned proprietary technology.
"These highly strategic acquisitions immediately put us on the map in the residential real estate valuation business across the United States," stated David King, President and CEO of Zaio. "The combined force of our three companies integrates management teams, technology platforms, business processes, product offerings and sales resources that are wholly complementary to one-another. The products we now offer are competitively priced across the full spectrum of valuation products the market buys. The scale and breadth of this integrated business is already being well received by customers who previously wouldn't have had visibility to Zaio's product offering."
Zaio's strategy has progressed to serve the housing market with proprietary appraisal products designed to serve banks, secondary mortgage market and investors. The addition of Valuation Vision brings new market opportunity through realtor-powered Broker Price Opinion (BPO) products, which are complementary to Zaio's appraiser-powered products and serve the investment and loan servicing community. Upon closing of Axis, Zaio will also be providing products relating to mortgage origination, serving a very large segment of the market in the United States. This market is powered by licensed appraisers and has the highest level of regulatory oversight. Over time, the power of Zaio's core database and its patented GeoScoring technology will drive unique products and appraiser efficiency throughout the Company's appraiser and realtor panels across the country. Currently, Zaio's database covers over 72 million residential properties out of the approximately 90 million homes Zaio is targeting in the United States. The Company anticipates to be providing dynamic valuation of these 90 million homes as expected, by the summer of 2014.
"Collectively, Zaio, Valuation Vision and Axis processed over 11,000 appraisal reports and BPO's during the month of February, generating over $2,000,000 of revenue, up more than 10% from the prior month," continued David King. "We are seeing great industry traction of our products from highly reputable and well known clients across the United States. This further validates the breadth and acceptance of our product line ranging from unique real estate broker derived products through to the traditional appraisal business that we now offer. We will introduce new appraisal products within the next few weeks that further leverage the most valuable attributes of Zaio's proprietary database along with Valuation Vision's operational platform, analytics, and forms engine for an unsurpassed appraiser and customer experience."
There can be no assurance that due diligence will be satisfactory, that a definitive agreement with Axis will be entered into, that regulatory approval will be received or that the transaction will be consummated. 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.
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 valuations prepared by licensed appraisers across the United States. Visit the company online at zaio.com.
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.
This press release contains forward-looking statements, including: (i) closing of the Valuation Vision transaction; (ii) completion of due diligence and entering into a definitive agreement with Axis; and (iii) projected revenues resulting from the acquisition of Valuation Vision and Axis. 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, including risks that: (i) a definitive agreement is not made with Axis and the transaction does not close; (ii) the Valuation Vision transaction does not close; and (iii) or that regulatory approval for the respective transactions is not obtained. 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.
SOURCE: Zaio Corporation
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