Zonetail Provides Corporate Update

Toronto, Ontario--(Newsfile Corp. - March 20, 2023) - Zonetail Inc. (TSXV: ZONE) (OTCQB: ZTLLF) ("Zonetail" or the "Company") is pleased to update its shareholders on recent accomplishments and developments.

HIGHLIGHTS

• Zonetail has recently signed agreements with two of the largest property management companies in North America representing just shy of two million units.
• Once fully rolled out this represents a 1731% increase in Zonetail's property portfolio since the start of 2023.
• The Company has an additional 14 million units in its immediate pipeline.
• The Company now reports that it has enough buildings to begin monetization.

DESCRIPTION

Zonetail provides mobile platforms for high-rise residential buildings connecting the residents to the amenities and services of their building through the convenience of a mobile app. Residents can create and track maintenance requests, receive community news and activity feeds, interact with building management, receive important updates via push notifications, pay their rent or maintenance dues and much more all at the touch of a screen. Included on the platform is a Marketplace where businesses can promote their goods and services directly to apartment and condo residents for a fee.

ZONETAIL: THE FIRST RESIDENTIAL SUPER-APP

The definition of a super-app according to Wikipedia is a mobile or web application that can provide multiple services including payment and financial transaction processing, effectively becoming an all-encompassing self-contained commerce and communication online platform that embraces many aspects of personal and commercial life.

"By now, there are over 435,000 app downloads per minute for a total of 230 billion per year. In this context, super apps have become a popular topic, and have been named one of Gartner Top 10 Strategic Technology Trends for 2023."

https://www.thoughtworks.com/en-ca/insights/blog/mobile/super-apps-global-trend

The Zonetail app was designed to be a super-app before the term 'super-app' was even a thing.

People no longer want an app to do one specific task. They prefer an app that can do everything they need all wrapped up in one. That's exactly what Zonetail has been doing well before the rest of the world caught on. Not only are we the first to market in the residential industry, but we're also the only one that can claim the title of being a super app.

Interacting with your building and streamlining the communication process between property management and resident/tenant is only half the battle. People need much more.

Having access to home services, grocery delivery, home decor, travel options, retail shopping, health and beauty, automotive, you name it and it's there, right in the palm of your hand.

Building out a marketplace for an industry the size of the North American high-rise residential segment does not happen overnight. To better explain the success that Zonetail has achieved it is important to revisit Zonetail's unique business model.

ZONETAIL'S BUSINESS MODEL (SIMPLIFIED)

• Zonetail partners and integrates with leading PMS (Property Management Software) companies like Yardi, Shiftsuite and more recently MRI Software. This gives us access to their clients - the PMCs (Property Management Companies).
• The PMCs sign on as Zonetail comes at no cost and adds incredible value, saving them considerable operational costs and introducing a new auxiliary revenue stream.
• Once uploaded onto the platform, the PMCs promote the downloading to their residents via email, so the Company's user acquisition cost is $0.
• The residents download the app, (after all if you lived in a high rise building and the building told you there was a new app, you'd download it too).
• With the downloads, the businesses that want to reach roughly 30% of the North American population pay to be on the platform. Thus, recurring revenue.

To execute against this model Zonetail needed to forge relationships with the PMS companies, which we have done with great success, and we will continue to forge more. The next step was to sign the PMCs to get the buildings and users.

RECENT ACCOMPLISHMENTS

Over the past 12-18 months Zonetail was focused on adding more buildings to our property portfolio. New buildings provide the Company with a larger user base, which in turn provides the ability to generate meaningful revenue.

• Over the past three weeks, Zonetail signed two new agreements with two very large Property Management Companies. In total they represent just shy of 2 million units.
• Once fully rolled out that represents a 1731% increase to Zonetail's property portfolio since the start of 2023 and more are pending!
• There are another ~14 million units in our immediate pipeline, some of which we expect to sign in the coming weeks.
• In addition, Zonetail signed an agreement with MRI Software in the fall of 2022. Once the integration is complete, Zonetail will begin rolling out to MRI's large portfolio of 20.1 million units.
• With all these exciting developments, the imminent MRI rollout, and the units in our immediate pipeline, Zonetail's emphasis is no longer solely focused on growing the property portfolio. As we roll these new units out, we are now in the position to begin monetizing it.
• These developments once again prove the need and broad desire for Zonetail in the high-rise property management residential industry

REVENUE

Zonetail has made several signings over the past few months as we continue to add more and more businesses to the Marketplace. The Company is actively introducing the Zonetail platform to some of the largest companies in North America and it is being very well received. Some of the industries the Company is focusing on include; credit card, retail chains, restaurant chains, travel (airline and hotel chains), home improvement, technology, media giants, banks, home furnishings, among others. As the Company continues to expand, it is expected that more and more businesses will participate in the Marketplace, generating both transactional revenue as well as advertising revenue.

The imminent launch of the payment processing feature is also expected to add significant revenue beginning in 2023.

With the Company's low monthly operating cost, and the shift in focus towards monetizing our current property portfolio, it is expected that the Company has the potential to be profitable within the next 9 to 12 months.

TECHNOLOGY UPDATES

The Company is engaged in several integrations and technology updates. Some are necessary to provide our platform to a greater number of PMCs and buildings, some are designed to drive revenue, while others are meant to increase user engagement.

• Payment Processing: On July 19, 2022, Zonetail announced the partnership with Fortis to allow for payment processing, which is expected to create a significant new revenue stream for the Company. Once launched, Zonetail will generate revenue from residents paying their monthly rent or maintenance dues who live in participating buildings. With the number of requests from property management companies asking Zonetail to include this service, the Company expects to have quite a few participating buildings. Payment processing is expected to begin beta testing in the coming weeks.
• New Integration: One of Zonetail's most recent signings requires a new integration with the PMS backend technology stack that the PMC is using. This is a priority, and the Company aims to complete this and get it into beta testing this spring.
• MRI Software integration: The Company aims to complete the necessary development work over the coming weeks to provide MRI with our platform so they can begin to deploy it across their large portfolio of PMC clients.
• MEALMe Integration: On September 26, 2022, the Company announced the signing of an agreement with MealMe. This integration is expected to drive significant revenue once complete. Part of this integration also includes the introduction of payment processing to the Marketplace which will provide additional revenue from the MealMe partnership and other current and future transaction-based clients.
• Forums: Zonetail plans to introduce user forums allowing residents (users) to create content and communicate with each other. This is expected to drive user engagement.
• Data and Analytics: The Company is also enhancing its capabilities in capturing meaningful data and analytics and tying that capture to a future planned introduction of artificial intelligence.

FINANCING UPDATE

On March 13, 2023, Zonetail announced private placement financing of up to $1,000,000.

Terms:

• A two-year secured debenture.
• 20% interest in year one, and 10% in year two.
• The note holder can convert into shares at $0.05 at any time.
• The Company can force the conversion when the stock reaches $0.125.
• Includes a full two-year warrant with a $0.05 strike price.
• The lead order is coming from Zonetail's Board of Directors.

Use of proceeds:

• Completion of technology projects described above.
• General operating costs.

About Zonetail

Zonetail Inc. (TSXV: ZONE) (OTCQB: ZTLLF) is a mobile platform and market network. Our 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. Our 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. We are the search engine to optimize your home. Zonetail is partnered with Yardi, Shiftsuite and now MRI Software which together account for an estimated 50 million households across North America.

Please visit https://www.zonetail.com.

For more information, please contact:
Mark Holmes, President and CEO, Zonetail Inc.
T: (416) 994-5399 E: mark@zonetail.com

Legal Disclaimer and Forward-Looking Statements

This press release contains forward-looking statements that relate to Zonetail's current expectations and views of future events. In some cases, these forward-looking statements can be identified by words or phrases such as "may", "will", "expect", "anticipate", "aim", "estimate", "intend", "plan", "seek", "believe", "potential", "continue", "is/are likely to" or the negative of these terms, or other similar expressions intended to identify forward-looking statements. Certain matters discussed in this announcement contain statements, estimates and projections about the growth of Zonetail's business, potential distribution partnerships and/or clients, and related business strategy. Such statements, estimates and projections may constitute forward-looking statements within the meaning of the federal securities laws. Factors or events that could cause our actual results to differ may emerge from time-to-time. Zonetail undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The recipient of this information is cautioned not to place undue reliance on forward-looking statements. Forward-looking statements are based on certain assumptions and analysis made by Zonetail in light of its experience and perception of historical trends, current conditions and expected future developments and other factors Zonetail believes are appropriate, and, are subject to risks and uncertainties. Although Zonetail believes that the assumptions underlying these statements are reasonable, they may prove to be incorrect. Given these risks, uncertainties and assumptions, prospective purchasers should not place undue reliance on these forward-looking statements.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/159071