Zaio, Valuation Vision and Axis Collectively Generated over $2.4 Million in Pro forma Revenue During the Month of April
CALGARY, May 29, 2014 /CNW/ - Zaio Corporation (TSX-V:ZAO), ("Zaio" or "the Company"), announced that during the month of April, Zaio, Valuation Vision and Axis collectively processed appraisal reports and BPO's, generating over $2.4 million in revenue on a pro forma basis, continuing solid month over month growth. The growth was driven by a combination of new customer acquisitions and growth in current customer relationships.
"Our products are well positioned and serving a growing market, and we are excited to see validation of that through another strong month in our collective pro forma revenue," said David King, President and CEO of Zaio Corporation. "We continue to work on closing the acquisition of Valuation Vision. In February we received results of Valuation Vision's audited financial statements up to June 30, 2013, and closed the investment in escrow. Due to additional regulatory requirements, Valuation Vision was required to complete their audited IFRS financial statements for the fiscal year ended December 31, 2013. The onsite audit was recently completed, and we expect the closing of the acquisition in coming weeks."
The Company also disclosed that new agreements have been finalized for its Licensee group of appraisers and firms in the United States, clearing the way for the closing, subject to regulatory approval, of the National License Agreement termination signed with Zone Data Systems LLC in December, 2013. The termination agreement provides Zone Data Systems LLC with 13,600,000 Zaio common shares and 13,600,000 share purchase warrants in exchange for terminating the National License Agreement. This allows Zaio to sell directly in the United States, and recognize revenue as a result.
"We recently introduced a number of appraisal products to leverage attributes of Zaio's proprietary database along with Valuation Vision's operations platform," continued David King. "In April, we completed the beta testing of our GEAR AP, a complete re-work of Zaio Z-VAL family of products. We are pleased to announce that the products have been launched, and we are already receiving orders from a number of highly reputable clients. The Company expects continued growth in revenues on a pro forma basis as the new product launch drives additional volume."
Zaio also announced today that its 2014 First Quarter Financial Statements and MD&A are posted on SEDAR.
The Company also announced that it has granted 2.75 million Restricted Share Units to management, and 100,000 options to a member of the Board of Directors of the Corporation, subject to the approval of the TSX Venture Exchange. Each option entitles the holder to acquire on Zaio Corporation common share at an exercise price of $0.205. These options will expire on May 27, 2019.
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
For further information: visit zaio.com or contact: David King, President & CEO, Zaio Corporation, 403-984-ZAIO, [email protected]; Babak Pedram, Investor Relations, Virtus Advisory Group Inc., 416-995-8651, [email protected]