MONTREAL, May 3, 2019 /CNW Telbec/ - IOU Financial Inc. ("IOU" or the "Company") (TSXV: IOU), a leading online lender to small businesses (IOUFinancial.com), announced today that it will submit a special resolution at its annual and special meeting of the Company's shareholders (the "Meeting") which will be held on June 13, 2019 in Montreal, to authorize a consolidation of its common shares ("Shares").
The Company considers it may be advisable to consolidate its issued and outstanding Shares since a share consolidation may have the effect of raising, on a proportionate basis, the market price of the common shares, which could appeal to certain investors that find shares trading above certain prices to be more attractive from an investment perspective.
Accordingly, shareholders will be asked to adopt a special resolution to authorize an amendment to the Company's Articles of Incorporation ("Articles") on such basis as the directors of the Company may determine, so as to consolidate the issued and outstanding Shares of the Company on the basis of one (1) Share for a maximum of ten (10) issued and outstanding Shares.
As of this date, 87,825,309 Shares of the Company are issued and outstanding; should a share consolidation on the basis of a 1 to 10 ratio be implemented, a total of approximately 8,782,530 Shares would be issued and outstanding. The share consolidation would not change a shareholder's proportionate interest in the Company, except that if, as a result of the share consolidation, a shareholder becomes entitled to a fractional Share, such fraction will be rounded down to the nearest whole number.
In addition to the approval of this special resolution by the Company's shareholders, this resolution is also subject to the receipt of all required regulatory approvals, including that of the TSX Venture Exchange. In addition, notwithstanding whether this resolution is passed by shareholders at the Meeting, the board of directors of the Company may choose not to implement the proposed amendments to the Articles at any time prior to the issuance of a Certificate of Amendment giving effect to the amendment of the Company's Articles, without further notice to or approval of the shareholders.
An information circular which describes this special resolution will be communicated to all shareholders of the Company on or about May 16, 2019.
About IOU Financial Inc.
IOU Financial Inc. provides small businesses throughout the U.S. and Canada access to the capital they need to seize growth opportunities quickly. Typical customers include medical and dental practices, grocery and retail stores, salons, gas stations, auto repair shops, restaurants, trade contractors and manufacturing 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. IOU Financial allows these businesses to apply for six, nine, twelve, fifteen and eighteen-month term loans of up to US$500,000 to qualified U.S. applicants ($100,000 in Canada) within a few business days, with affordable charges favorable to cash-flow management. Its speed and transparency make IOU Financial a trusted alternative to banks. To learn more visit: 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 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 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.