CALGARY, May 1, 2016 /CNW/ - Zaio Corporation (TSXV: ZAO)
(the "Company" or "Zaio"), today announced its fourth quarter (Q4)
financial results for the three and twelve month periods ended
December 31, 2015.
"We are pleased with the progress in revenue growth that has
been made in the latter half of the 2015 fiscal year as we continue
to aggressively pursue building our client base and marketing the
Valuation Vision platform across the U.S.," said Shane Copeland, CEO of Zaio Corporation.
"Towards the end of last year, we received orders from several
large organizations, both government institutions and private
companies, to use our BPOMerge platform and we view this as
reaffirmation that our product remains highly competitive in the
appraisal industry. We have only begun to take advantage of the
massive opportunity that exists in this market and expect to see
orders more frequently and of higher volume as organizations
continue to recognize the unique benefits from the BPOMerge
platform."
Financial Highlights
- Total revenue was $1,488,566 for
the three months ended December 31,
2015, compared to nil for the same period in 2014. The
revenue in Q4 2015 increased by 32% compared to Q3 2015. Total
revenue was $3,156,896 for the twelve
months ended December 31, 2015,
compared to nil for the same period in 2014.
- Net loss of $1,815,065
($0.01 per share) for the three
months ended December 31, 2015,
compared to loss of $1,098,901
($0.01 per share) for the same period
in 2014. Net loss of $12,996,685
($0.07 per share) for the twelve
months ended December 31, 2015,
compared to loss of $5,429,248
($0.07 per share) for the same period
in 2014.
Operational Highlights
- During the quarter:
- Expenses were significantly reduced effective end of
November 2015, which will be fully
reflected in Q1 2016.
- A top 10 U.S. national lender selected Valuation Vision's
MarketValue Pro to replace its current BPO.
- Subsequent to the quarter:
- Zaio Corporation announced a contract with a U.S. government
institution to perform valuation services on non-performing
loans
- The Company completed a debenture financing for a gross amount
of $1.585 million at a price of
$1,000 per $1,000 principal amount of debenture. The
debentures bear a 15% interest rate per annum payable in quarterly
instalments in cash or common shares. The debentures expire on
January 25, 2019
- As part of the debenture financing, the Company issued
4,905,000 common share purchase warrants ("Warrants") representing
a total of three Warrants issued to each Subscriber for each
$1.00 of principal amount of
debentures. Each warrant entitles the holder to purchase one common
share at a price of $0.11 exercisable
for a period of 36 months after the date of issuance
About Zaio Corporation
Zaio Corporation was founded on the simple premise that current
real estate valuation technologies lacked the information and
technology necessary to deal with today's dynamic housing market.
Zaio is disrupting an industry that was once thought not possible
through its proprietary valuation solutions. Every day our
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 warrant surrender, share subscription and
convertible debenture amendment and automatic conversion, which may
include, but is not limited to, the approval of the TSX Venture
Exchange, approval of the debentureholders and approval by
the shareholders of Zaio. 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