More News
Mr. David King reports ZAIO TERMINATES EXCLUSIVE NATIONAL LICENSE AGREEMENT WITH ZONE DATA SYSTEMS Zaio Corp. has closed the transaction to terminate the exclusive national licence agreement (NLA) with Zone Data Systems LLC (ZDS). Termination of the NLA allows Zaio to sell its appraisal and valuation products directly in the United States, to recognize revenue generated from its product suite. In exchange for termination of the exclusive NLA, ZDS received 13,600,000 Zaio common shares and 13,600,000 share purchase warrants with an exercise price of $0.20 per warrant exercisable for 12 months on the date that is one year from date of issue. "We are pleased to complete this transaction to realign our relationship with ZDS and the individual zone licensees," said David King, President and CEO of Zaio Corporation. "Going forward, Zaio will directly fulfill orders for valuation products and services that leverage Zaio's patented technology. The termination of this agreement is also the culmination of a seven month strategy to engage zone licensees with individual agreements to fulfill valuation services leveraging Zaio proprietary data and technology.""ZDS and its members continue to be committed partners with Zaio," said Randy Kass, Chairman of ZDS. "Our zone licensees have engaged in new agreements to provide valuation expertise that complements Valuation Vision and AXIS Appraisal Management to provide innovative valuation solutions in all 50 states." "Zaio has always believed that machine based solutions alone cannot replace the valuation judgement of a trained and objective local expert. Our strategy leverages human expertise with patented technology to deliver a full range of valuation products, from BPO's to regulated appraisal products, across the country through a nationwide network of appraisers," continued Mr. King. "The new zone licensee agreements complement our pending AXIS Appraisal Management acquisition to provide our clients with accurate cost-effective solutions that exceed compliance and regulatory requirements."As a result of closing the transaction, ZDS holds 13,600,000 common shares of Zaio representing 9.7% of the currently outstanding common shares of Zaio. The share purchase warrants are exercisable by ZDS starting on February 4, 2016 for one year, however assuming the exercise of the warrants in full today, ZDS would beneficially own or control 27,200,000 common shares of Zaio representing approximately 17.7% of the issued and outstanding common shares of the Company as at February 4, 2015. The shares issued to Zone Data Systems are subject to a one year hold from the date of issue and were issued at a deemed price per security of $0.12. The deemed price was established pursuant to the policies of the TSXV being the discounted market price on December 20, 2013, the date the initial press release announcing the transaction was made.ZDS may, depending on market and other conditions, increase or decrease their beneficial ownership, control or direction over the Zaio common shares, through market transactions, private agreements, treasury issuances, exercise of convertible securities or otherwise. ZDS relied on Section 2.12 of National Instrument 45-106 - Prospectus and Registration Exemptions. This news release is issued pursuant to National Instrument 62-103: The Early Warning System. A copy of the Early Warning Report will appear with Zaio's documents on the SEDAR website at www.sedar.com. Nothing in this press release or in the filing of the above-mentioned report is an admission that any person named in the report is a joint actor with another named entity. We seek Safe Harbor.