CALGARY, ALBERTA -- (Marketwire) -- 03/19/13 -- Zaio Corporation (TSX VENTIRE: ZAO) (the "Company"), today reported that in early 2013, Zaio has experienced strong adoption of the Company's Z-VAL and 1004 URAR products in the California market.
In the first eight weeks in California and using a growing number of licensed appraisers (approximately 70) from the Zone Data Systems LLC network, Zaio has processed a total of 3,500 transactions for these two product categories. On a per appraiser basis, order rates have averaged 1.5 transactions per day and have ranged as high as five transactions per day in certain areas. In addition, Z-VAL's have been sold to 57 different customers to date including credit unions, banks, home owners, and investors.
"These are still very early days in the launch of these two products in California, but these initial results confirm the market's acceptance of our value proposition and provide an initial benchmark that we can now use to report our progress as we scale up our distribution in California and across the U.S.," commented David King, ZAIO President and CEO.
Form 1004 URAR is the appraisal standard used by mortgage originators and US Federal government agencies such as Fannie Mae across the US as the basis for establishing maximum loan to value ratios in underwriting residential mortgages. It includes an exterior and interior inspection of the property, performed by a licensed appraiser. Z-VAL is Zaio's proprietary valuation product that is used by mortgage professionals in place of Broker-Price-Opinions ("BPO's") to pre-qualify mortgage applications and to provide investors with a licensed desktop appraisal product.
The company and its multiple distribution partners are continuing to qualify additional appraisers from within the Zone Data Systems LLC appraiser network with the objective of having over 220 appraisers certified across six states by the end of Q2-2013. Maintaining similar order volume from this expanded network, Zaio would be well positioned to experience positive cash flows shortly thereafter.
"Gaining commercial acceptance of the 1004 URAR and our Zaio product suite by both appraisers and end users is an important and welcome milestone for the Company," noted Mr. King. "From this base, we will continue to build out our network of qualified appraisers and develop valuation tools that allow appraisers to improve the services that they deliver to their clients."
Zaio also announced today that it has entered into an agreement with an officer of the Company for $90,000 and another arms length party for an additional $90,000 comprising the fourth tranche of a subordinated secured bridge loan (the "Bridge Loan") in the principal amount of $180,000 for an aggregate principal amount of $1,000,000. The Bridge Loan is for a term ending June 5, 2013. The Company will pay interest on the Bridge Loan at a rate of 1% per month payable at maturity. The Company will also pay a commitment fee to the lenders equal to 5% of the principal amount of the Bridge Loan and issue to the Lenders on a pro rata basis 100,000 common share purchase warrants ("Warrants") for each $100,000 principal amount of loan. The Warrants are exercisable at $0.20 per share for a term equal to the term of the loan. The Bridge Loan is secured against the all of the assets of the Company and subordinated to all senior indebtedness including the Company's convertible debenture. The proceeds of the Bridge Loan will be used for working capital and general corporate purposes. Unless permitted under securities legislation, the Warrants are not tradable prior to expiry and the holder of the common shares issuable upon exercise of the Warrants must not trade such common shares before July 19, 2013.
The Bridge Loan and the issuance of Warrants to the officer of the Company are considered to be related party transactions subject to TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101. Zaio is relying on the exemptions from the formal valuation and minority shareholder approval requirements provided under sections 5.5(a) and 5.7(a) of Multilateral Instrument 61-101 on the basis that participation by such officer in these transactions does not exceed 25% of the fair market value of the Company's market capitalization.
For further information visit www.zaio.com.
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. The Company's products are available in the United States through its Licensee, Zone Data Systems LLC.
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. 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.
Neither TSXV, CNSX nor their Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
President & CEO
Genoa Management Ltd.
Most Popular Stories
- New Hershey's Logo Revealed
- Americans Still Pessimistic Despite Economic Growth
- Obama's Delay on Immigration Creates Uncertainty
- Startups Offer Smartphone Banking Apps
- Mexico's Pemex Forecasts 6.7% Drop in 2014 Crude Production
- Echeveste Steps Down, Perez Steps Up at VPE
- 'Longmire' Cancelled, Looks for New Network
- Clippers Deal Started With 2 Numbers
- Hip-Hop Takes Up Ferguson Cause
- Illinois Issues Fracking Rules