/NOT FOR DISTRIBUTION IN THE UNITED STATES WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/
MONTRÉAL, July 6, 2015 /CNW Telbec/ - IOU Financial Inc. (TSXV: IOU) ("IOU Financial" or the "Company"). Pursuant to the Press Release dated June 19, 2015, IOU Financial, a leading online lender to small businesses, wishes to provide further details regarding its previously announced private placement for gross proceeds of $3,118,000.
As previously announced on June 19, 2015, a syndicate of agents (the "Agents") led by Haywood Securities Inc. and including Cormark Securities Inc. completed an offering (the "Offering") of 7,795,000 common shares (the "Common Shares") at a price of $0.40 per Common Share (the "Offer Price").
As compensation for their services in connection with the Offering, IOU Financial has paid to the Agents a cash commission equal to 7% of the gross proceeds of the Offering, other than in respect to 1,250,000 Common Shares sold to a related party of the Company (for which a 5% commission fee was paid), and it has issued to the Agents an aggregate of 545,650 compensation options, each such option entitling the holder thereof to purchase one Common Share at the Offering Price until June 19, 2017.
All securities issued at the closing of the Offering (including underlying securities) are subject to a hold period under applicable Canadian securities legislation and the policies of the TSX Venture Exchange (the "TSX-V"), which expires on October 20, 2015.
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 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 e-commerce companies. In a unique approach to lending, IOU Financial'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 Financial'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.