CALGARY, Sept. 22, 2016 /CNW/ - Zaio Corporation (TSXV: ZAO) (the "Company" or "Zaio") today announced that it has closed its first tranche of the previously announced (see August 31, 2016 press release) $4 million Debt Facility ("Facility") provided by StableView Asset Management ("StableView") on behalf of managed accounts and funds with gross proceeds of $1,500,000.
"This additional funding support from StableView Asset Management will enable us to execute on our business plan and fuel the growth of Zaio" said Shane Copeland, CEO of Zaio Corporation.
Zaio issued an aggregate amount of $1.5 million in principal amount of debentures ("Debentures") at a price of $1,000 per $1,000principal amount of Debenture. The Debentures will bear an interest rate of 15% per annum payable quarterly in cash or in common shares ("Common Shares"), at the option of StableView, subject to a reduction to 12% per annum if the Company's all debt ranking in priority to the Debentures is fully repaid. The Debentures will mature on September 21, 2019. At any time on or after March 21, 2017, StableView may also upon notice, require repayment of the outstanding Debentures together with any accrued and/or unpaid interest. The Debentures have been guaranteed by the Company's wholly-owned subsidiary, Valuation Vision, Inc. (the "Guarantor"), and have been secured against all of the Company's and the Guarantor's property, assets and patents and will be registered in all of the jurisdictions in which the Company and the Guarantor carry on business.
In addition, the Company issued 4,500,000 common share purchase warrants ("Warrants"). Each Warrant entitles the holder thereof to purchase one 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.
Under the terms of the Facility, Zaio paid StableView a $150,000 facility administration fee, by issue of $150,000 principal amount of Debentures and 450,000 Warrants. Zaio also agreed to pay StableView a fixed annual fee of $70,000, payable quarterly.
The proceeds from the Facility will be used for general corporate purposes. The transaction is subject to the submission of final documents and final approval of the TSX Venture Exchange.
In addition, Zaio is pleased to announce the following results from its September 20, 2016 Annual General Shareholder Meeting ("AGM"):
| i) | Election of: Walter Andri, Jim Boyle, Russell Bruemmer, Shane Copeland, Willem Gale, Robert Gloer and Nick Tillema to the Board of Directors, receiving not less than the 95% vote in favour of their election; |
| ii) | The reappointment of KPMG as auditors of the Company; and |
| iii) | The approval of the Company Stock Option Plan. |
"We want to thank the shareholders who were able to attend our AGM," said Shane Copeland, CEO of Zaio Corporation. "I'd also like to welcome the newest members of our board Nick Tillema and Russell Bruemmer. They bring valuable expertise that will help us leverage new opportunities in the U.S. finance industry."