CALGARY, ALBERTA -- (Marketwired) -- 07/05/13 -- Zaio Corporation (TSX VENTURE: ZAO) (the "Company"), today announced that it had signed a letter of intent to acquire the National License Agreement from Zone Data Systems LLC ("ZDS") for 13.76 million shares in Zaio Corporation and 13.76 million share purchase warrants priced at $0.20 per warrant.
"The ZDS National License Agreement was signed in 2009, and provided for ZDS to manage and collect 50% of net profits for everything sold in the United States from Zaio's technology and data platform. It was designed to complement the direct appraiser relationships Zaio continues to enjoy," noted David King, President and CEO, Zaio Corporation. "By making ZDS a ZAIO shareholder, we align both companies and improve Zaio's profitability and streamline the financial and operational aspects of running the business," added Mr. King.
The parties are working to finalize the transaction within 30 days. The transaction is subject to certain performance requirements and the completion of due diligence, all necessary corporate, third party and regulatory approvals and authorizations and the negotiation, finalization and execution of definitive agreements.
"Zone Data Systems is excited to restructure the administrative aspects of the business with Zaio. This allows us to focus our energy and resources on building out the database and providing excellent service and delivery turn times to our customers. With appraisers active across the country and more than 51 million homes ready for order taking, the business is primed to take-off," said Randy Kass, Chairman of Zone Data Systems LLC. "ZAIO's data and product development teams continue to provide outstanding technology, and our appraiser partners across the country are utilizing the ZAIO platform to sell products from $99 to $250 per transaction in an efficient and cost effective manner," added Mr. Kass.
The Company also announced that at a special meeting of Debenture Holders on Friday June 28th, 2013, the previously announced amendments to the outstanding debentures were passed with the requisite majority.
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.
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 the proposed acquisition of the National License Agreement by the Company from Zone Data Systems LLC. 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, including that the letter of intent is non-binding, is subject to various third party approvals and subject to negotiation of definitive agreements and as such there can be no assurance that the proposed transaction will be completed, or if completed, will be completed within the time period above. 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 accepts responsibility for the adequacy or accuracy of this release.
President & CEO
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