15% notes will mature in 2019; David King participates in offering
By Devika Patel
Knoxville, Tenn., June 2 – Zaio Corp. said that it sold C$2,386,000 more of its 15% three-year debentures. The company raised C$1,635,000 in the offering on Jan. 26 and said in a press release that it expects a third and final tranche in the near future.
The coupon will be reduced to 12% if the company’s 10% convertible secured debentures due 2017 are repaid, according to a company press release.
The company may prepay the 15% debentures in full or in part at a price of par plus a 5% premium along with accrued interest.
Beginning July 25, 2017, StableView Asset Management Inc., the lender representative on behalf of the holders, may require repayment of the debentures with accrued interest.
The debentures have been guaranteed by the company’s wholly owned subsidiary Valuation Vision, Inc., and have been secured against all of the company’s and the guarantor’s property, assets and patents.
Investors also received 4,905,000 warrants in the first tranche and 7,158,000 warrants in the second tranche, or three warrants per C$1.00 of notes. Each warrant is exercisable at C$0.11 for three years. The strike price is a 37.5% premium to the company’s C$0.08 closing price on Jan. 25.
David King, a director, invested C$200,000 in the first tranche.
Proceeds will be used for general corporate purposes.
Based in Calgary, Alta., Zaio maintains a database of property information.
| Issuer: | Zaio Corp.
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| Issue: | Debentures
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| Amount: | C$4,021,000
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| Maturity: | Jan. 25, 2019, June 1, 2019
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| Coupon: | 15%
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| Price: | Par
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| Prepayment option: | At par plus a 5% premium
|
| Put option: | Beginning July 25, 2017
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| Warrants: | 12,063,000, or three warrants per C$1.00 of notes
|
| Warrant expiration: | Three years
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| Warrant strike price: | C$0.11
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| Agent: | StableView Asset Management Inc.
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| Investor: | David King (for C$200,000)
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| Pricing date: | Jan. 26 (for C$1,635,000), June 2 (for C$2,386,000)
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| Stock symbol: | TSX Venture: ZAO
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| Stock price: | C$0.08 at close Jan. 25
|
| Market capitalization: | C$28.41 million
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