Zaio signs Letter of Intent to Acquire Axis Appraisal Management Solutions

CALGARY, March 3, 2014 /CNW/ - Zaio Corporation (TSXV: ZAO), ("Zaio" or "the Company"), is pleased to announce that it has entered into a letter of intent agreement (LOI) with Axis Appraisal Management Solutions ("Axis"), in which it has offered to acquire Axis for US$3.25 million in cash and 17 million common shares of Zaio, subject to due diligence and regulatory approvals.

Due diligence is expected to be completed and definitive transaction agreement signed by April 15, 2014. During such period, Axis is not permitted to actively solicit, receive, evaluate nor enter into negotiations with parties that offer alternative proposals.

"Axis has been a long time partner of Zaio's and is a leading Appraisal Management Company in the United States.  With the industry's highest quality appraiser panel and consistently excellent customer satisfaction scores, Axis operates on a national scale and provides Zaio with a broader product offering into the regulated appraisal market and operating licenses across the United States," said Dave King, President and CEO of Zaio Corporation. "Upon closing of this acquisition, Axis would become a subsidiary of Zaio and continue to function as it has, but with greater resources, technology and systems to support its base of appraisers and clients. The net result is a nationwide network of over 5,000 appraisers, 100,000 realtors, and highly skilled and knowledgeable staff and management, all powered by proprietary technology from Zaio and Valuation Vision. Our network will operate out of San Rafael, CA, Tempe, AZ, and Carlsbad, CA, with additional sales personnel in Dallas, Chicago, and New York, representing a truly national entity with deep and experienced leadership and management."

"We are extremely pleased with the Axis Board's decision to enter into this agreement, but also want to assure clients that Axis' leadership team will remain intact and continue to manage appraisal operations with the same level of care and customer service its industry partners have come to expect," said Kim Perotti, Executive Vice President of Axis. "One benefit of this transaction will be Axis's ability to provide a deeper suite of services and products to clients including home inspections, evaluations, AVMs and BPOs - all through enhanced technology."

"Collaborative evaluations diversify the types of opportunities for our elite panel of appraisers and afford a high standard of valuation products at various price points for our clients," said Michael Simmons, Senior Vice President of Axis. "With these additional tools, we will now be in position to expand our footprint to broader spectrum of clients. This transaction will open an exciting new chapter for Axis, Zaio, and its additional subsidiary, Valuation Vision."

There can be no assurance that due diligence will be satisfactory, that a definitive agreement will be entered into, that regulatory approval will be received or that the transaction will be consummated.

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.

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.

About Axis Appraisal Management Solutions

Axis is a privately held S Corp and a leading national appraisal management company. It serves regional and national bankers, credit unions, attorneys, and home owners with a highly qualified team of certified appraisers and experienced quality control appraisers and account managers with regional focus.

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 completion of due diligence and entering into a definitive agreement. 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, including risks that a definitive agreement is not made or that regulatory approval is not obtained. 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 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]