Zonetail and Belgravia Hartford Complete Settlement Agreement and Mutual Release

Rhea-AI Summary

Zonetail Inc. (TSXV: ZONE) (OTC Pink: ZTLLF) announces the settlement of a legal battle with Belgravia Hartford Capital Inc. (CSE: BLGV) resulting in the write-off of approximately $557,000 in debt and termination of all obligations under previous agreements. Zonetail also paid off a debenture from 2019 for $160,000 plus accrued interest, totaling $756,000 in debt that is no longer owed.

Toronto, Ontario--(Newsfile Corp. - January 8, 2024) - Zonetail Inc. (TSXV: ZONE) (OTC Pink: ZTLLF) ("Zonetail" or the "Company") is pleased to announce that the Company and Belgravia Hartford Capital Inc. (CSE: BLGV) ("Belgravia") (together the "Parties") have executed a Settlement Agreement and Mutual Release (the "Agreement").

Background
In 2019, Belgravia brought an insolvency claim against Zonetail, which disrupted the Company's operations and had a significant negative effect on Zonetail's ability to raise capital. In response, Zonetail served a statement of claim against Belgravia for damages, and in 2020, Belgravia filed a counterclaim (together the "Action"). The Parties have been engaged in a costly legal battle ever since.

Terms of Settlement
The Parties have agreed to settle all outstanding matters, including the Action, on a without cost basis, resulting in Zonetail writing off all indebtedness to Belgravia in the amount of approximately $557,000 and terminating all obligations under previous agreements with Belgravia.

Mark Holmes, CEO of Zonetail, stating, "It has taken the better part of five years, but we have finally put this mess behind us. This settlement proves once and for all that Zonetail's position in this matter was justified. With this settlement, we not only remove a significant amount of debt off our balance sheet, but we also eliminate the heavy legal costs that the Company has been incurring since 2019. Our shareholders should be very pleased at this outcome."

In addition to the $557,000, Zonetail also recently paid off a debenture from 2019 for $160,000 plus accrued interest for a total of $756,000 in debt that is no longer owed.

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.

About Zonetail

Zonetail Inc. (TSXV: ZONE) (OTC Pink: 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/193605

FAQ

What is the ticker symbol for Zonetail Inc.?

The ticker symbols for Zonetail Inc. are TSXV: ZONE and OTC Pink: ZTLLF.

What was the legal battle between Zonetail and Belgravia about?

Belgravia brought an insolvency claim against Zonetail in 2019, disrupting the company's operations and ability to raise capital, leading to Zonetail filing a counterclaim against Belgravia.

What is the total amount of debt written off by Zonetail as part of the settlement?

Zonetail has written off approximately $557,000 in debt owed to Belgravia and paid off a debenture from 2019 for $160,000 plus accrued interest, totaling $756,000 in debt that is no longer owed.

How does the CEO of Zonetail, Mark Holmes, describe the settlement?

Mark Holmes stated that the settlement proves Zonetail's position was justified, removing a significant amount of debt off the balance sheet and eliminating heavy legal costs incurred since 2019.

What is the recent financial action taken by Zonetail in addition to the settlement?

In addition to the $557,000 debt write-off, Zonetail also paid off a debenture from 2019 for $160,000 plus accrued interest, totaling $756,000 in debt that is no longer owed.