Zaio Corporation Announces Completion of Third and Final Tranche of Debenture Financing for Gross Proceeds of $29,000

/THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES./

CALGARY, Aug. 2, 2016 /CNW/ - Zaio Corporation (TSXV: ZAO) ("Zaio" or the "Company") is pleased to announce that it has closed the third and final tranche of its previously announced (see press releases January 26, 2016 and June 1, 2016) private placement (the "Financing") with gross proceeds of an additional $29,000 for total gross proceeds pursuant to the fully subscribed Financing of approximately $4,000,000.

Zaio issued an aggregate amount of $29,000 in principal amount of debentures ("Debentures") at a price of $1,000 per $1,000 principal amount of Debenture. The Debentures will mature on January 25, 2019. 

As part of the Financing, Zaio also issued 87,000 common share purchase warrants ("Warrants"), representing a total of three Warrants issued for each $1.00 of principal amount of Debentures. Each Warrant entitles the holder thereof to purchase one common share ("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.

The securities issued pursuant to the Financing will be subject to a four-month hold period.

The proceeds from the Financing will be used for general corporate purposes. This transaction is subject to the submission of final documentation and final approval of the TSX Venture Exchange.

About Zaio Corporation

Zaio Corporation provides real estate valuation technologies to deal with today's dynamic housing market through its proprietary valuation solutions.  Every day 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.

This news release does not constitute an offer to sell or a solicitation of an offer to buy and 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.

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.

SOURCE Zaio Corporation

visit www.zaio.com or contact: Phil Wazonek, President & COO, Zaio Corporation, 403-819-5449, [email protected]; Shane Copeland, CEO, Zaio Corporation, 760-208-6460, [email protected]; Babak Pedram, Investor Relations, Virtus Advisory Group Inc., 416-644-5081, [email protected]