CALGARY, May 30, 2016 /CNW/ - Zaio Corporation (TSXV:
ZAO) (the "Company" or "Zaio"), today announced its first quarter
(Q1) financial results for the three months ended March 31, 2016.
"With just shy of $1.8 million
dollars in revenue, it is clear that our vision for Zaio is
beginning to come to fruition," said Shane
Copeland, CEO of Zaio Corporation. "While still in the early
stages of the strategy we outlined late last year, the Board and
management team remain committed to capturing new market share and
continuing to strengthen our relationship with our existing
Government Sponsored Entity (GSE) client base. Whether it be
through new partnerships, expanding our technology's capabilities,
or further expanding into mortgage originator market, we are
committed to capturing market share and capitalizing on the
opportunities that are in front of us. Additionally, we are well on
our way to simplifying our capital structure to ensure that Zaio
has the working capital it needs going forward and to best serve
the interest of shareholders."
Financial Highlights
- Total revenue was $1,790,041 for
the three months ended March 31,
2016, compared to $64,480 for
the same period in 2015.
- Total cost of sales for the three months ended March 31, 2016 was $982,334 compared to $nil for the same period in
2015. This figure has been recalculated to include direct costs
such as remunerations, cost of operations and quality control
employees, to more accurately reflect costs incurred in pursuit of
revenue.
- Total operating expenses and other expenses were $2,927,302 for the three months ended
March 31, 2016, compared to
$6,624,002 for the same period in
2015.
- Net loss of $2,119,595
($0.01 per share) for the three
months ended March 31, 2016, compared
to a net loss of $6,559,522
($0.04 per share) for the same period
in 2015.
- As at March 31, 2016, the
Company's cash position was $171,995,
compared to a cash position of $37,304 on December 31,
2015.
Operational Highlights
- During the quarter:
- The Company announced completion of debenture financing for
gross proceeds of $1.58 million and
executive employment matters
- The Company was awarded a contract to perform valuation
services pertaining to non-performing asset loans for a U.S.
government agency
- Subsequent to the quarter:
- The Company announced the private placement and early
termination of warrants held by ZDS. ZDS agreed to terminate
warrants to purchase 451,520 common shares of Zaio at a price of
$0.11
- Zaio Corporation and the Keylink Family of Companies extend the
Clarocity technology platform to include GSE asset inspections
- The Company was engaged by Morningstar Credit Ratings to
perform rankings for residential vendors
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 and share subscription which may
include, but is not limited to, the approval of the TSX Venture
Exchange. 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