MONTREAL, May 2 /CNW Telbec/ - IOU Financial Inc. (formerly known as MCO Capital Inc.) ("IOU Financial") (CNSX: IOU) is pleased to announce that on May 29, 2011 it closed the second tranche of its $5 million private placement of class B shares (the "Class B Shares") and warrants to purchase Class B Shares at an exercise price of $0.50 for a one-year term (the "Warrants", and together with the Class B Shares, collectively the "Units") for total gross proceeds of approximately $1 million. The Units were offered to investors at a price of $0.40 per Unit. HDL Capital Corporation ("HDL Capital"), a Toronto-based Exempt Market Dealer, was Lead Agent on the transaction.
Following such closing, IOU Financial intends to proceed, on the same terms, with a third tranche of its $5 million private placement of Units, which it intends to complete by May 31, 2011.
About IOU Financial
IOU Financial, through its subsidiaries IOU Central Inc., a private corporation existing under the laws of Canada, and IOU Central Inc., a private corporation existing under the laws of Deleware, operates an Internet-based lending platform aimed at small businesses throughout the United States that IOU Financial believes are under served by banks today. IOU Financial allows these businesses to obtain loans (up to $100,000) without having to turn to more expensive factoring type products. To learn more visit: www.ioucentral.com
About HDL Capital
Founded in 1993, HDL Capital is a Toronto based boutique investment bank and Exempt Marker Dealer that completes private/public financings and M&A transactions for middle market companies across a range of industries in the Restaurant/Hospitality, Manufacturing, Technology, Mining/Resources, Marketing Services and Financial Services sectors. To learn more visit: www.hdlcapital.com
Forward Looking Statements
Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of IOU Financial including, but not limited to, the impact of general economic conditions, industry conditions, dependence upon regulatory and shareholder approvals, the execution of definitive documentation and the uncertainty of obtaining additional financing. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. IOU Financial does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events, or otherwise.
The CNSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
| IOU Financial Inc.
President & CEO
Tel. : 514-789-0694
Email : firstname.lastname@example.org
| HDL Capital Corporation
Tel: 416-599-7330 ext. 2114
| HDL Capital Corporation
Tel: 416-599-7330 ext. 2105