Zaio gets majority vote needed to pass amendment for 10% convertibles

Company also enters into agreement for C$800,707 bridge loan

By Jennifer Chiou

New York, Jan. 2 - Zaio Corp. announced that holders of its 10% secured redeemable convertible debentures dated June 15, 2011 voted at a Dec. 31 meeting to pass an extraordinary resolution to provide for a one-time only make-whole payment to those who choose to convert their securities into the company's units.

According to a press release, holders of C$3.8 million of the C$7.36 million of debentures voted in favor of the amendment.

Each unit consists of a common share in the capital of the company and a common share purchase warrant.

"We are pleased with the large voter turnout, with every vote cast in favor of our proposal," president and CEO David King said in the release.

Olympia Trust Co. is the trustee.

In other news, the company entered into an agreement for the fourth tranche of a subordinated secured bridge loan for C$800,707, amounting to a total aggregate principal amount of C$1,480,707. The loan has been increased to C$1.5 million and matures at the end of March. Interest is 1% per month, payable at maturity.

Calgary, Alta.-based Zaio provides customers in the property valuation, underwriting and lending industries with real-time access to certified appraisal reports from its database.

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