Mr. Mark Holmes reports

ZONETAIL AND BELGRAVIA HARTFORD COMPLETE SETTLEMENT AGREEMENT AND MUTUAL RELEASE

Zonetail Inc. and Belgravia Hartford Capital Inc. have executed a settlement agreement and mutual release.

Background

In 2019, Belgravia brought an insolvency claim against Zonetail, which disrupted the company's operations and had a significant negative effect on Zonetail's ability to raise capital. In response, Zonetail served a statement of claim against Belgravia for damages, and in 2020, Belgravia filed a counterclaim. The parties have been engaged in a costly legal battle ever since.

Terms of settlement

The parties have agreed to settle all outstanding matters, including the action, on a without cost basis, resulting in Zonetail writing off all indebtedness to Belgravia in the amount of approximately $557,000 and terminating all obligations under previous agreements with Belgravia.

Mark Holmes, chief executive officer of Zonetail, stated: "It has taken the better part of five years, but we have finally put this mess behind us. This settlement proves once and for all that Zonetail's position in this matter was justified. With this settlement, we not only remove a significant amount of debt off our balance sheet, but we also eliminate the heavy legal costs that the company has been incurring since 2019. Our shareholders should be very pleased at this outcome."

In addition to the $557,000, Zonetail also recently paid off a debenture from 2019 for $160,000 plus accrued interest for a total of $756,000 in debt that is no longer owed.

About Zonetail Inc.

Zonetail is a mobile platform and market network. Its mission is to provide a state-of-the-art mobile platform that enables high-rise residents to better manage their homes by connecting people to products, amenities and services. The company's vision is to build a critical mass of users in the hard-to-reach, high-rise residential vertical, through a unique mobile market network model -- providing vital information, products and services at the tap of a screen. Zonetail is the search engine to optimize homes. Zonetail is partnered with Yardi, Shiftsuite and now MRI Software which together account for an estimated 50 million households across North America.

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