Zonetail Corporate Update

Toronto, Ontario–(Newsfile Corp. – August 23, 2021) – Zonetail Inc. (TSXV: ZONE) (OTCQB: ZTLLF) (“Zonetail” or the “Company”) is pleased to update its shareholders on recent accomplishments and developments.

Zonetail provides mobile platforms to high-rise residential buildings and hotels, connecting the residents and guests to the amenities and services of their building through the convenience of their personal mobile device.

Included on both platforms is an ‘Explore’ section highlighting the businesses and services in the local area. These businesses pay to be on the platforms to reach the highly sought, but often difficult to reach hotel guests and high-rise residents. In addition to the advertising revenue, Zonetail is also engaged in transaction revenue, where the Company receives fees for merchandise and services purchased through the platforms.

Management believes it is important to update all stakeholders on recent developments and upcoming projects.

  • YARDI – On July 20,2021, Zonetail announced the successful completion of the beta test integration with Yardi, laying the foundation to dramatically increase the number of condo and apartment buildings in the Company’s portfolio.
    • Yardi is the largest property management software provider in North America, with tens of thousands of buildings representing millions of residents.
    • As of August 18, 2021, Zonetail’s new residential platform, named, ‘Zonetail Home’ is now available for download in both the AppStore and GooglePlay.

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    • Zonetail is in discussions with several leading property management corporations across North America to onboard the Zonetail Home platform for their buildings and their residents.
    • Update on Phase Two: Before the end of August, Zonetail will have an additional platform made available to Yardi clients that utilize Yardi’s premium platforms, RentCafe and CondoCafe.
    • Yardi’s RentCafe and CondoCafe include mobile platforms, so the full ‘Zonetail Home’ platform is not needed for these properties. However, CondoCafe and RentCafe do not have the advertising component. Zonetail’s new standalone web-based “Explore” advertising content can be added to these platforms. This is expected to increase Zonetail’s user base as these Yardi platforms are already well established with significant downloads.
    • On May 21, 2021 Zonetail entered into an advertising agreement with HelloFresh, the largest meal kit delivery company in the world. HelloFresh is live on Zonetail’s entire Canadian residential portfolio and future portfolio as Yardi buildings onboard. “Meal Kit Delivery services is a highly sought service for our residential users. We couldn’t be happier than to partner with HelloFresh, the world’s leader in their industry,” said Mark Holmes CEO of Zonetail.
    • On May 18, 2021 Zonetail signed an agreement with Budget Blinds. Budget Blinds provides a wide selection of high-quality window coverings, and with more than 1,000 locations, is one of the largest companies in this industry in North America. Budget Blinds launched with Zonetail in the Greater Toronto Area, and plans are in the works to expand into other regions, particularly in the U.S. when Yardi buildings are made available.
    • On June 24, 2021 Zonetail signed Clean Meals, a discount and bulk meal kit provider.
    • On April 16, 2021 Zonetail signed an agreement with FarmBoy, a high-end grocery store chain, owned by Sobey’s. Come September, FarmBoy is planning to increase their coverage.
    • Zonetail continues to pitch many other large corporations across Canada and is expecting to make some additional noteworthy announcements in the fall.
    • James Jenkins, Zonetail’s Director of U.S. Markets has been actively introducing the ‘Zonetail Home’ platform to some of the largest companies in North America. “The platform is being very well received, as none of these companies have ever seen anything like the unique value proposition that Zonetail offers,” said Jenkins. “They all want direct access to this huge residential market and no other platform can give them the scale and access that Zonetail can.” Jenkins went on to say, “As the momentum continues to build, I fully expect that many of these prospective clients will convert into signings, adding what should be considered very meaningful future revenue.” Some of the industries James has been focusing on include; telecommunications, travel (hotel chains), home improvement, technology, media giants, banks, home furnishings, among others.
    • Zonetail has been in discussions with other prospective clients and partners to integrate their services into the ‘Zonetail Home’ app. Recently, Zonetail executed a focus group with users to identify the top categories that users (residents) want in the app. The number one request was “Home Repair/Home Services”. Zonetail is close to signing an agreement with a U.S. based technology company that provides a wide range of home services including home cleaning, handyman, electricians, plumbers, you name it. The plan is to integrate their services, white-labelled, into ‘Zonetail Home’ giving the users exactly what they are asking for. It is expected that Zonetail will receive a transaction fee for each service booked through the platform. Expect a future update on this exciting development in the coming weeks.
    • On August 18, 2021, Zonetail entered into a letter of intent with Grupo Ozean S de RL de CV (Ozean), based in Cabo, Mexico, to launch Zonetail in Mexico. The letter of intent is based on a six-month test trial with both Zonetail’s residential and hotel platforms. The planned test will take place in the city of Cabo as well as Mexico City. “We are very excited to launch Zonetail in Mexico,” said Carlos Gadsden, President of Grupo Ozean S de RL de CV. “The residential market in Mexico needs a platform like Zonetail Home and as travel begins to rebound from COVID, the hotels in destinations like Cabo and Mexico City will be jumping at the opportunity to use the Zonetail hotel platform.”
      If, at the end of the six-month trial, it is deemed successful, it is expected that Zonetail and Ozean will enter into either a franchise agreement or a joint venture agreement solidifying the Mexican expansion of the Zonetail platforms.
      “This is a very important initiative for Zonetail’s future global expansion plans. We are hopeful and have every reason to believe that this test trial in Mexico will lay the groundwork to create multiple franchises or J/Vs, taking the Zonetail platforms around the world,” said Mark Holmes, CEO of Zonetail.
  • ZONETAIL BOARD OF DIRECTORS – Zonetail is planning to increase the size of the board of directors from five to six.
    • As the Company’s residential platform continues to expand, it was deemed necessary to include on the board a member with extensive experience in the residential property management industry.
    • “We have had strong hotel representation on the board with Chip Rogers, CEO and President of the American Hotel and Lodging Association, as well as David Oliver with over 40 years-experience in the hotel industry,” said Paul Scott, Chairman of Zonetail. “It is important for the future growth of the Company to also include a board member from the residential side of the business, and that’s exactly what we intend to do.”
    • As mentioned above, the Company continues to develop new technology initiatives, such as the web-based “Explore’ plug-in to service Yardi buildings that do not require the full “Zonetail Home” platform. This is expected to be released before the end of August.
    • New Feature: Zonetail is pleased to announce that work has begun on the introduction of Community Forums into the platform. This will allow residents to create topics, posts and add photos to communicate with each other. They can offer things such as dog walking services, babysitting services, content sales, or just to create fun topics that residents will enjoy engaging in. “Think of it as a modern-day replacement to the corkboards you’ll find in the mail room in a high rise building – except much better, obviously,” said Errol Farr, Zonetail’s CFO and COO. Farr went on to say, “Users have asked for it, so we believe that a feature such as this will be well received and increase our monthly active users, as it’s user created and driven content.”
    • Plans are underway to begin the development of Zonetail’s new travel platform. The new travel platform will replace the current app, and provide many new and important features, such as mobile check-in, AI, a chat bot and several others. The planned release of the new hotel platform is in first half of 2022 when it is expected that the travel industry will show a meaningful rebound from the effects of COVID-19. The market will be kept apprised as this development continues.
    • On July 6, 2021, Zonetail announced the final exercise of all outstanding warrants for proceeds of $2.9 million
    • The Company currently has in excess of $2 million in cash and cash equivalents.

About Zonetail

Zonetail Inc. (TSXV: ZONE) (OTCQB: ZTLLF) is a mobile platform for hotels and high-rise residential buildings providing guests and residents access and interaction with building amenities and services, as well as neighbouring restaurants, stores, services, and other businesses. Zonetail has a partnership 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. The residential platform is now live in over 80,000 condominium households. Zonetail recently launched it’s new ‘Zonetail Home’ platform that includes integration with Yardi, the largest property management software company in North America representing an estimated tens of thousands of buildings and millions of residents. The rollout has begun and is expected to dramatically increase the number of users in the Zonetail residential vertical.

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For more information, please contact:

Mark Holmes, President and CEO
Zonetail Inc.
Telephone: (416) 994-5399

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.