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.
Forward-Looking Information
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