/THIS NEWS RELEASE IS INTENDED FOR
DISTRIBUTION IN CANADA ONLY AND IS
NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES./
CALGARY, June 1, 2016 /CNW/ - Zaio Corporation (TSXV:
ZAO) ("Zaio" or the "Company") is pleased to announce that it has
closed the second tranche of its previously announced (see press
release January 26, 2016) private
placement (the "Financing") with gross proceeds of an additional
$2.386 million for total gross
proceeds pursuant to the Financing of approximately $3.971 million. The Company anticipates a third
and final closing in the near future.
Zaio issued an aggregate amount of approximately $2.386 million in principal amount of debentures
("Debentures") to subscribers ("Subscribers") at a price of
$1,000 per $1,000 principal amount of Debenture. The
Debentures will mature on June 1,
2019.
As part of the Financing, Zaio also issued approximately
7,158,000 common share purchase warrants ("Warrants"), representing
a total of three Warrants issued to each Subscriber for each
$1.00 of principal amount of
Debentures. Each Warrant entitles the holder thereof to purchase
one common share ("Common Share") in the capital of the Company at
$0.11 per Common Share exercisable
for a period of 36 months from the date of issuance.
Finders' fees were paid to arm's length third parties of Zaio
consisting of cash in the aggregate amount of $5,100 being 6% of the gross proceeds raised by
the Finders and 5,100 Finders' compensation warrants (the "Finders'
Warrants") were issued to the Finders being 6% of the number of
Debentures subscribed for through the Finders. The Finders'
Warrants were issued on the same terms and conditions as the
Warrants.
All securities issued pursuant to the Financing (including any
underlying securities and the Finders' Warrants) will be subject to
a four-month hold period.
The proceeds from the Funding will be used for general corporate
purposes. This transaction is subject to the submission of final
documentation and final approval of the TSX Venture Exchange.
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.
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.
This news release does not constitute an offer to sell or
a solicitation of an offer to buy and 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.
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 Financing, which may include, but is not limited
to, the approval of the TSX Venture Exchange and approval by the
shareholders of Zaio. 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.
SOURCE Zaio Corporation