/NOT FOR DISTRIBUTION IN THE UNITED STATES WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/
MONTRÉAL, June 2, 2015 /CNW Telbec/ - IOU Financial Inc. (TSXV: IOU) ("IOU Financial" or the "Company"), parent of IOU Central Inc. ("IOU Central"), a leading online lender to small businesses, today announced that it has revised the terms of its up to C$7,000,000 private placement offering previously announced on February 26, 2015. The Company will now issue up to 5,500,000 common shares of the Company ("Common Shares") at an issue price of C$0.40 per Common Share for gross proceeds of up to C$2,200,000 (the "Offering").
As previously announced, the Offering is to be marketed on a commercially reasonable best efforts basis by a syndicate of agents (together, the "Agents") led by Haywood Securities Inc. and including Cormark Securities Inc. The Company has granted the Agents an option (the "Agent's Option"), exercisable in whole or in part, at any time up to 48 hours prior to the closing of the Offering to increase the size of the Offering by up to 825,000 Common Shares. If the Agents' Option is exercised in full, the total gross proceeds of the Offering to IOU Financial will be C$2,530,000.
The closing of the Offering is expected to occur on or about June 8, 2015 or such other date as agreed by IOU Financial and the Agents. Completion of the Offering is subject to receipt of all regulatory approvals, including the approval of the TSX Venture Exchange.
Proceeds from the Offering will be utilized by the Company for general corporate and working capital purposes.
This news release does not constitute an offer of securities for sale in the United States. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States absent U.S. registration or an applicable exemption from U.S. registration requirements.
About IOU Financial
IOU Financial, via its U.S. subsidiary, IOU Central, provides small businesses throughout the U.S. access to the capital they need to seize growth opportunities quickly. Typical customers include medical and dental practices, grocery and retail stores, restaurant and hotel franchisees and ecommerce companies. In a unique approach to lending, IOU Central's advanced, automated application and approval system accurately assesses applicants' financial realities, with an emphasis on day-to-day cash flow trends. It makes loans of up to $150,000 to qualified applicants within a few business days, with affordable charges favorable to cash-flow management. IOU Central's speed and transparency make it a trusted alternative to banks. To learn more visit: www.ioufinancial.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.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE IOU FINANCIAL INC.