Bankruptcy Application Filed by Belgravia Capital Against Zonetail has been Dismissed.

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

TORONTO, Ontario, August 17, 2020 — Zonetail Inc. (“Zonetail” or the “Company”) (TSXV: ZONE), is pleased to advise that Madam Justice Barbara Conway of the Commercial List of the Ontario Superior Court of Justice dismissed a bankruptcy application that had been filed against Zonetail. Accordingly, there is no longer any bankruptcy proceeding pending against Zonetail.

Briefly, on June 20, 2019, Belgravia Capital International Inc. (“Belgravia”), initiated a bankruptcy application before the Ontario Court against Zonetail alleging that Zonetail had ceased to meet its liabilities generally as they came due. Belgravia did not thereafter take any steps to bring its application forward for a determination by the Court. Zonetail filed responding affidavits confirming that it is solvent and meeting its liabilities generally as they fall due. The parties consented to an order dismissing the bankruptcy application which order was granted last week.

 

Mark Holmes, CEO of Zonetail stated, “This action has had, and continues to have, a damaging effect on the Company’s operations, and cost of raising capital since it was filed over a year ago. The fact that Belgravia filed the claim but did not bring its application forward in the courts speaks volumes as to its merits. We are pleased to see this claim finally dismissed.”

About Zonetail

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:

Zonetail Inc.

Mark Holmes

CEO & President

Phone: (416) 994-5399

mark@zonetail.com

 

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.