Clarocity Corp CLRYF

RE:ZDS cancellation approved by exchange.

[Trelawny]

Eastendpost,
In response to the content of the news release. This is a big deal.

This now means that ZAO can now show revenue - something this firm has essentially never done.

If one reads the previous press releases that show the acquisition costs of the different entities as well as the continued growth of the combined pro-forma income numbers and extrapolate a bit - and read some tea leaves. I would guess that the revenue from Valuation Vision and Zaio alone would be somewhere between $550K to $800K per month.

This would potentially move ZAO nearer break-even in cash flow (from moderate losses to possible moderate positive cash flow) depending on where in the range they land.

Having a company go financially from the gurney to running marathons is a big deal. In reality, they have been very healthy as combined entity - however with the previous long delay in the financing these deals could not get completed. Now with the capital raise they are able to execute on the deals.

This means that those pro-forma number they have been publishing will soon translate into real audited numbers as the deals begin to close.

We have now seen 3 major back-to-back announcements:
1) The December 10th announcement to acquire the assets of Valuation Vision.
2) The December 12th announcement of the closing of the $8.2 million Private Placement
3) The Jan 28th announcement of the TSXV approval to terminate the NLA agreement with ZDS

The missing ingredient for this firm for the last year and a bit has been the lack of funds to close the announced acquisitions.

With the advent of the closing of the $8.2M private placement capital raise the firm is now showing that they are in full execution mode.

The announcements have been coming steadily - and given that the holidays were between the 2nd and 3rd announcement - and in a timely manner.

I would anticipate that given the announcements and the time lines given (which are not dependent on funds) that the previously announced deals will close in a timely manner and that revenue and profitably will soon follow.

I believe this morning's announcement was the most important announcement to date - and that as per the previous annoucements, the balance of the deals will soon close.

Best regards,

Trelawny