Zonetail Inc.: A Significant Amendment to the Terms of Its Secured Notes
Toronto, Canada – March 27, 2025
Zonetail Inc. (TSXV: ZONE, OTCPinks: ZTLLF), a leading real estate technology company, recently announced an amendment to the terms of its non-brokered private placement of Series A 20% secured notes. This announcement comes following the press releases dated April 24, 2023, and April 3, 2024.
The Offering and Its Progress
The Company successfully closed $203,800 of the Notes, with insiders accounting for $115,500 or 57% of the offering. These Notes carry a 20% secured interest rate, payable in cash on the anniversary of each note.
The Proposed Amendments
Zonetail aims to request Note Holders to defer the first and second year’s interest (the “Deferred Amount”) on the Notes and extend the maturity of the Notes until April 2026. The Deferred Amount will accrue interest at a rate of 20% per annum.
Implications for Zonetail and Its Stakeholders
For Zonetail, this amendment could provide several benefits. Deferring the interest payments allows the Company to conserve cash flow during the initial stages of the Notes’ maturity. Extending the maturity of the Notes provides more time for the Company to generate revenue and improve its financial position.
Insiders, holding a significant portion of the Notes, may also benefit from the extension as they will have a longer-term investment horizon. The deferred interest payments offer a higher potential return if held until maturity.
Impact on the Wider Community
The implications of this amendment extend beyond Zonetail and its stakeholders. This news could be seen as a positive sign for the real estate technology sector, indicating investors’ confidence in the Company’s growth potential.
Moreover, the extension of the maturity and deferral of interest payments could potentially reduce Zonetail’s overall debt servicing obligations, making its financial structure more robust. This could lead to increased investor interest and a potential boost to the Company’s stock price.
Conclusion
The amendment to the terms of Zonetail’s Series A 20% secured notes represents a strategic move for the Company, offering both short-term and long-term benefits. With the confidence of its insiders and the wider investment community, Zonetail can focus on its growth strategies while managing its debt obligations effectively.
This news also underscores the growing potential of the real estate technology sector, as investors continue to demonstrate their faith in innovative companies driving change in the industry.
