Zonetail Inc. Announces Participation of Insiders In Gypsy Swap Transaction
Toronto, Ontario--(Newsfile Corp. - June 5, 2020) - Zonetail Inc. (TSXV: ZONE) ("Zonetail" or the "Company"), is pleased to announce that an officer/director of the Company is selling an aggregate of 1,700,000 common shares of the Company from their personal holdings, for aggregate proceeds of approximately $34,000, with such sale to occur on or about June 5, 2020. In addition, a second unrelated person to the Company may sell up to 2.0 million shares at the same time.
The officer/director of the Company is expected to use the proceeds generated from the sale of these shares to subscribe for an aggregate of 1,700,000 newly issued treasury securities of the Company under its previously announced private placement offering of Units. In addition, the unrelated person is expected to subscribe to the private placement. Each Unit consisting of one common share and one whole common share purchase warrant entitling the holder to acquire one additional common share at an exercise price of $0.05 for a period of 12 months following the issue date of such warrants. The initial closing under the Offering occurred on June 3, 2020. See press releases dated February 19, 2020, April 13, 2020, April 29, 2020, May 29, 2020 and June 3, 2020 for full details with respect to the Offering.
Such subscription is expected to occur on or prior to June 30, 2020 the final closing of the Offering. All securities issuable pursuant to the Offering, including the Shares, if any, issuable on the exercise of the Warrants are subject to a four month and one day hold period from the date of issuance in accordance with applicable Canadian securities laws.
The Company is seeking to raise up to a total amount of $1,295,683 under the Offering and hopes to complete the final tranche of the Offering prior to June 30, 2020. As previously disclosed, the initial closing of the Offering for aggregate proceeds of $479,200 was completed by the Company June 3, 2020. Any such closing will be subject to receipt of all required consents and approvals, including any further approvals of the Exchange. There is no assurance that the final tranche of the Offering will be completed on a timely basis or at all.
Zonetail is a mobile platform for hotels and condominiums providing guests and residents access and interaction with building amenities and services as well as neighboring restaurants, stores, services, and attractions.
Zonetail is partnered with AAHOA, the largest association of hoteliers in the world, representing over 25,000 hotels and 50% of the US market. Zonetail is also partnered with Shiftsuite, one of the largest property management system software providers to the condo industry in Canada, with approximately 2,000 condo buildings, representing an estimated 400,000 units. Zonetail has offices in Toronto, Ontario and San Dimas, California.
For more information, please visit https://www.zonetail.com.
For further information, please contact:
Phone: (416) 583-3773 x 228
ANY SECURITIES REFERRED TO HEREIN WILL NOT BE REGISTERED UNDER THE US. SECURITIES ACT OF 1933 (THE "1933 ACT") AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO A U.S. PERSON IN THE ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE 1933 ACT.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
Forward Looking Statements
This release includes forward-looking statements regarding Zonetail and its business. Such statements are based on the current expectations and views of future events of Zonetail's management. In some cases the forward-looking statements can be identified by words or phrases such as "may", "will", "expect", "plan", "anticipate", "intend", "potential", "estimate", "believe" or the negative of these terms, or other similar expressions intended to identify forward-looking statements. The forward-looking events and circumstances discussed in this release may not occur and could differ materially as a result of the failure to complete the rights offering, known and unknown risk factors and uncertainties affecting Zonetail, including risks regarding economic factors and the equity markets generally and many other factors beyond the control of Zonetail. No forward-looking statement can be guaranteed. Forward-looking statements and information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statement or information. Accordingly, readers should not place undue reliance on any forward-looking statements or information. Forward-looking statements speak only as of the date on which they are made and Zonetail undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by applicable securities laws.
Neither the 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.
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