MONTREAL, March 1, 2012 /CNW Telbec/ - IOU Financial Inc. ("IOU Financial") (CNSX: IOU) announced today that it has signed an engagement letter with HDL Capital Corporation ("HDL Capital"), a Toronto-based Exempt Market Dealer, in connection with a proposed private placement of up to approximately $1 million aggregate amount of Units. It is intended that each Unit be priced at $0.40 and be comprised of 1 Class B common share of IOU Financial ("Class B Share") and 1 warrant to purchase a Class B Share at $0.50 per Class B Share within 1 year of its issuance (a "Warrant", and together with the Class B Share, collectively a "Unit"). HDL Capital will act as lead placement agent on the proposed private placement. The net proceeds of the proposed private placement will be used by IOU Financial to fund the growth of its US-based operating subsidiary IOU Central Inc. and for general corporate purposes.
Completion of the proposed private placement is subject to customary closing conditions for transactions of this nature, including the approval of the CNSX. The closing thereof is expected to take place on or about March 31, 2012.
This news release shall not constitute an offer to sell nor the solicitation of an offer to buy nor shall there be any sale of any securities of IOU Financial in any jurisdiction in which such offer, solicitation or sale would be unlawful. The Units will be offered on a private placement basis in Canada and only to accredited investors, as such term is defined under applicable Canadian securities laws.
THE SECURITIES WILL NOT BE REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933 (THE "1933 ACT") AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES ABSENT REGISTRATION UNDER OR AN APPLICABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE 1933 ACT.
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 Delaware, operates an Internet-based lending platform aimed at small businesses throughout the United States that IOU Financial believes are under served by banks today. 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.