Zaio Corporation Approves Debenture Interest Payments, Broker Warrant Conversions and Share Capital Adjustments

CALGARY, Dec. 22, 2014 /CNW/ - Zaio Corporation (TSXV: ZAO) (the "Company" or "Zaio") announced today that debentureholders have agreed to take shares as payment for a total of $253,400 of the December 31, 2014 debenture interest payment pursuant to the terms of the debentures issued under the trust indenture dated May 9, 2013. The total number of shares issued in lieu of cash will be calculated based on the greater of the 20 day weighted average trading price of Zaio's shares prior to December 31, 2014 and closing market price of Zaio's shares on last trading day prior to the interest payment date.

A total of $19,000 of debenture interest payments will be made in cash pursuant to the terms of the May 9, 2013 trust indenture. Holders of approximately 93 percent of the outstanding debentures have agreed to take shares as their form of interest payment for this semi-annual interest payment date.

Zaio also announces that it has issued 1,725,518 common shares pursuant to the exercise of 1,715,277 broker warrants and 10,241 common share purchase warrants for gross proceeds of approximately $209,370. The broker warrants were issued pursuant to the Company's 2013 debenture financing and were exercisable for $0.12 per broker warrant into one common share and one common share purchase warrant at an exercise price of $0.15 per share. Approximately 55% of the broker warrants issued have been exercised to date.

In addition the Company announces that approximately 2 million common shares have been returned to treasury as a result of subscription adjustments from its December 11, 2014 financing.

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

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.

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.

SOURCE Zaio Corporation