CALGARY, Jan. 28, 2015 /CNW/ - Zaio Corporation (TSXV: ZAO) (the "Company" or "Zaio") is pleased to announce that it has received conditional approval from the TSX Venture Exchange to terminate the National License Agreement ("NLA") with Zone Data Systems, LLC ("ZDS"). The Company expects to close the transaction within two weeks. Termination of the NLA will allow Zaio to sell its appraisal and valuation products directly in the United States, and recognize revenue generated from these sales. It also enables Zaio to regain operational control of the US territory related to administrative and sales functions.
In exchange for termination of the NLA, ZDS will receive 13,600,000 Zaio common shares and 13,600,000 share purchase warrants priced at $0.20 per warrant exercisable for 12 months on the date that is one year from date of issue.
"The termination of the National License Agreement is an important value creation milestone for our company and shareholders, as we begin the recognize revenue on the sale of our GEAR product line," said David King, President and CEO of Zaio Corporation. "We have a large and committed set of partners across the country who continue to be Zone Licensees. Under new contracts, we now have a nationwide platform with the ZDS Zone Licensees working side by side with members of the Valuation Vision realtor panel, and the Axis Appraisal Management appraiser panel. Altogether, delivering a range of valuation and regulated appraisal products in all 50 states. We can now actively pursue national accounts."
The NLA was initially signed in 2009 and provided for ZDS to manage revenue and collect 50% of net profits for all sales in the US from Zaio's technology and data platform. Zaio signed a letter of intent to acquire the NLA in July 2013 and signed a definitive agreement to terminate the NLA in December 2013.
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 evaluations 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 completion of the transaction to terminate the NLA. 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 (including that the closing conditions may not be satisfied) 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.
Neither TSXV nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Zaio Corporation
For further information: visit www.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]