MONTREAL, Aug. 2, 2019 /CNW Telbec/ - IOU Financial Inc. ("IOU") (TSXV: IOU) is pleased to announce that the holders of its 10% convertible unsecured subordinated debentures due December 31, 2020 (the "Debentures") have approved the previously announced amendments to the terms of the Debentures by extraordinary resolution.
The amendments, which were detailed in IOU's news release of July 25, 2019, received the support of the holders of over 66 2/3% of the aggregate principal amount of the Debentures, as required by the terms of the trust indenture pursuant to which they were issued. IOU has already applied for and received conditional approval from the TSX Venture Exchange for the amendments.
extend the maturity date of the Debentures from December 31, 2020 to December 31, 2023;
eliminate the condition that the Debentures be redeemable by IOU only when the current market price is 125% of the conversion price;
modify the conversion price of the Debentures from $0.75 per share to $0.50;
eliminate IOU's right to carry out a forced conversion of the Debentures; and
eliminate IOU's right to redeem or repay the principal amount of the Debentures with freely tradeable shares.
The conversion period for the Debentures remains unchanged and is set to expire at 5:00 p.m. on the last business day prior to December 31, 2020.
IOU issued the Debentures by way of a private placement pursuant to a trust indenture dated November 2, 2015, and has entered into a supplemental trust indenture with Computershare Trust Company of Canada, the debenture trustee, to finalize the amendments.
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.