Notes may be prepaid at 5% premium; holders may require repayment
By Susanna Moon
Chicago, Jan. 26 – Zaio Corp. said that it issued C$1,635,000 principal amount of 15% three-year debentures at a price of par.
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.
Zaio also issued 4,905,000 common share purchase warrants, representing a total of three warrants issued to each subscriber for each C$1.00 principal amount. Each warrant is exercisable at C$0.11 for 36 months.
The strike price is a 37.5% premium to the company’s closing price on Jan. 25.
Proceeds will be used for general corporate purposes.
David King, a director of the company, subscribed for C$200,000 debentures.
Based in Calgary, Alta., Zaio maintains a database of property information.
| Issuer: | Zaio Corp.
|
| Issue: | Debentures
|
| Amount: | C$1,635,000
|
| Maturity: | Jan. 25, 2019
|
| Coupon: | 15%
|
| Price: | Par
|
| Prepayment option: | At par plus a 5% premium
|
| Put option: | Beginning July 25, 2017
|
| Warrants: | 4,905,000
|
| Warrant expiration: | 36 months
|
| Warrant strike price: | C$0.11
|
| Agent: | StableView Asset Management Inc.
|
| Investor: | David King, a director, for C$200,000
|
| Pricing date: | Jan. 26
|
| Stock symbol: | Canada: ZAO
|
| Stock price: | C$0.08 at close Jan. 25
|
| Market capitalization: | C$14.65 million
|
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