Zaio, Valuation Vision and Axis continue Pro forma revenue growth
CALGARY, July 3, 2014 /CNW/ - Zaio Corporation (TSX-V:ZAO), ("Zaio" or "the Company"), as part of its continued disclosure practice, today announced that Zaio, Valuation Vision, LLC ("Valuation Vision") and Axis Appraisal Management Solutions ("Axis") respectively reported that the companies collectively processed Broker Price Opinions, GEAR Appraisal reports, and traditional appraisals across the country, generating over $2.6 million in revenue during the month of May, and over $2.75 million during the month of June on a pro forma basis (assuming completion of the acquisitions of Valuation Vision and Axis), continuing the solid growth of the Company on a pro forma basis since the beginning of the year.
"Our three companies on a combined basis continue to grow presence in the market, and we are delighted with the performance of all product lines. Collectively the companies are both adding new clients and expanding relationships with existing customers to drive month over month revenue growth on a pro forma basis," said David King, President and CEO of Zaio Corporation. "We are also progressing well with our acquisitions. We have been informed by Valuation Vision that the auditors are in their final review and that Valuation Vision expects completion of audited documents in the next few weeks."
"We are also finalizing our due diligence on Axis and expect to complete and sign the definitive transaction agreement shortly," continued Dave King. "We recently announced a $5 million private placement financing to make sure we are well capitalized for our acquisitions. Although the financing is independent of the Axis transaction, we intend to coordinate closing of the financing with the signing of the Axis definitive agreement."
Zaio also announced that, debentureholders of the Company, have chosen to take shares as payment for a total of $265,000 of the June 30, 2014 debenture interest payment pursuant to the terms of the debentures issued under the trust indenture dated May 9, 2013 (the "Debentures"), while $7,500 of interest was paid in cash pursuant to the terms of the Debentures. The total number of interest shares issued in lieu of cash will be 1,322,890 shares priced at the 20 day weighted average trading price of Zaio's shares prior to June 30, 2014, which was $0.201 per share.
Holders of approximately 98 percent of the outstanding Debentures have agreed to take shares as their form of interest payment for this semi-annual interest payment date.
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.
Certain information in this press release is forward-looking within the meaning of Canadian securities laws as it relates to anticipated events and strategies. When used in this context, words such as will, anticipate, believe, plan, mandated, intend, target, and expect or similar words suggest future outcomes.
Forward-looking information in this press release, includes, among other things, information relating to: (i) projected revenues resulting from the acquisition of Valuation Vision and Axis; (ii) the audit of Valuation Vision, the completion of Valuation Vision's audited financial statements and the closing of the Valuation Vision transaction; (iii) completion of due diligence and entering into a definitive agreement with Axis, conducting and completing an audit of Axis and the closing of the Axis transaction; and (iii) the timing and completion of the proposed financing.
These statements are based on certain assumptions and analyses made by the Company in light of its experience, current conditions and expected future developments and other factors it believes are appropriate. The material factors and assumptions used to develop these forward-looking statements include, but are not limited to: (i) the accuracy of the revenues reported by Valuation Vision and Axis; (ii) the ability of the Company to realize such revenues in the event the Valuation Vision and Axis transactions are closed and the ability of Zaio to effectively integrate the combined entities; (iii) the ability of the Company to close of the Valuation Vision transaction; (iv) the ability of the Company to negotiate and execute a definite agreement with Axis and to close of the Axis transaction; and (v) the ability of the Company to close the proposed financing.
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 such forward-looking information. In evaluating forward-looking information 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 audit of Valuation Vision is not completed and the transaction does not close; (iii) the revenues of Valuation Vision and Axis are accurate and will be realized by the Company in the event the acquisition transactions close; (iv) that the financing will not be completed, or if it is, that the Company will not be sufficiently capitalized to close the Valuation Vision and Axis acquisitions or conduct operations of the combined entities; and (v) or that regulatory approval for the respective transactions is not obtained. If any such risks actually occur, they could materially adversely affect the Company's business, financial condition or results of operations. In that case the trading price of the Company's common shares could decline, perhaps materially.
Readers are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Forward-looking statements are provided for the purpose of providing information about management's current expectations, and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. Zaio does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in Zaio's expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law.
SOURCE: Zaio Corporation
For further information: 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]