Zaio Corporation Completes Private Placement

/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, April 3, 2014 /CNW/ - Zaio Corporation (TSXV:ZAO), ("Zaio" or "the Company"), is pleased to announce that it has completed a private placement financing of secured subordinated notes (the "Notes"). The Company raised gross proceeds of $500,000 under the private placement of Notes.

Mackie Research Capital Corporation ("Mackie Research") acted as sole agent for the private placement of Notes in accordance with the terms of an agency agreement entered into between Mackie Research and the Company. The terms of the Notes mirror the terms of the Company's previous bridge loans (the "Bridge Loans"), including a 5% commitment fee and a 1% per month interest rate and are subject to a minimum of 3 months interest. The maturity date of the Notes is June 30, 2014. The Notes are secured against the Company's assets and subordinated to all senior indebtedness including the Company's previously announced convertible debentures and rank pari passu with the previous Bridge Loans.

In addition to the private placement of the Notes, the Company completed a non-brokered placement of a Bridge Loan in the amount of $128,000.  The proceeds of the Notes and the Bridge Loan will be used for working capital and general corporate purposes.

In consideration for its services, Mackie Research received $20,000 in commission. In addition, Mackie Research was issued 80,000 broker warrants, each broker warrant being exercisable to acquire a common share at a price of $0.25 per share for a period of 24 months from the date of issuance of the broker warrants.

The private placement of the Notes and the Bridge Loan remain subject to the approval of the TSX Venture Exchange.

About Zaio Corporation

Zaio provides customers in the property valuation, underwriting and lending industries with real-time access to certified appraisal reports from the company's patented database of proactively maintained residential property valuations prepared by licensed appraisers across the United States. Visit the company online at zaio.com.

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.

This press release contains forward looking statements including completing the second tranche of the private placement and receipt of all necessary regulatory approvals. 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 and there can be no assurance that the second tranche of the private placement will close. 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

Neither the TSXV nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

SOURCE: Zaio Corporation

Visit zaio.com or contact: David King, President & CEO, Zaio Corporation, (403) 984-ZAIO, [email protected]; Babak Pedram, Investor Relations, Virtus Advisory Group Inc., 416-995-8651, [email protected]