CALGARY, May 25, 2016 /CNW/ - The Company is pleased
to announce that holders of 10% secured, redeemable, convertible
debentures ("Debentures") today approved, by extraordinary
resolution, indenture amendments providing for the automatic
conversion (the "Automatic Conversion") of outstanding
Debentures into only common shares of the Company (the "Common
Shares") in consideration for the issuance of 10,833 Common
Shares for each $1,000 Debenture.
"We strongly believe that the automatic conversion of debentures
into common shares benefits both the Company and our
debentureholders," said Phil
Wazonek, President & COO of Zaio Corporation. "Through
this automatic conversion, we not only strengthen our balance sheet
from reduced interest costs, but also ensure that we have the
working capital we need moving forward to provide confidence to
both new and current clients of our Valuation Vision business. This
decision is intended to benefit all stakeholders and increase
shareholder value, furthering us towards our goal of having the
capital structure required to accelerate growth."
The amendments (the "Amendments") to the indenture
governing the Debentures approved today provide for:
- payment, of 10,833 Common Shares for each $1,000 Debenture (or integral multiple thereof)
automatically converted;
- conversion into Common Shares only instead of units comprised
of Common Shares and warrants; and
- automatic conversion of the Debentures.
Each Debentureholder will be issued 8,333 Common Shares upon
conversion at $0.12 per Common Share
and 2,500 Common Shares in consideration for the Amendments for a
total of 10,833 Common Shares for each $1,000 Debenture or integral multiple thereof. No
further investment of funds is required of Debentureholders.
Completion of the trust indenture amendment and issuance of the
Common Shares are subject to receipt of final Exchange
approval.
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 trust indenture amendment which may include, but is
not limited to, debentureholder approval or 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