CALGARY, Jan. 14, 2016 /CNW/ - Zaio Corporation (TSXV: ZAO) (the "Company" or "Zaio") announces that debentureholders have agreed to take shares as payment for a total of $209,150 of the December 31, 2015 debenture interest payment pursuant to the terms of the debentures issued under the trust indenture dated May 9, 2013. Subject to TSX Venture Exchange approval, the Company will issue 2,614,375 common shares in lieu of cash based a deemed conversion price per share of $0.08, being the greater of the 20 day weighted average trading price of Zaio's shares prior to December 31, 2015 and closing market price of Zaio's shares on last trading day prior to the interest payment date.
A total of $13,000 of debenture interest payments has been made in cash pursuant to the terms of the May 9, 2013 trust indenture. Holders of approximately 94 percent of the outstanding debentures agreed to take shares as their form of interest payment for this semi-annual interest payment date.