Company continues to reduce corporate debt after seeing 2021 loan originations increase more than 90% vs 2020.
MONTREAL, March 22, 2022 /CNW Telbec/ - IOU FINANCIAL INC. ("IOU" or "the Company") (TSXV: IOU), a leading online lender to small businesses (IOUFinancial.com), announced today that it is repurchasing approximately $1.2 million of its convertible debentures in the capital of the Company (the "Debentures") at par. Such transactions are being carried out pursuant to repurchase agreements entered into with individual holders of Debentures.
Today's move to repurchase $1.2 million of Debentures brings total repurchases to approximately $4.9 million over the past 12 months, leaving approximately $6.8 million of outstanding principal value of Debentures which mature December 2023.
"The success of IOU's marketplace strategy announced in 2021 is allowing us to scale up faster than previously possible," stated Robert Gloer, President and CEO. "We're proud of the team for breaking new origination records and giving us the extra latitude to further reduce corporate debt."
IOU originated approximately US$161.5 million in loans in 2021, representing an increase of more than 90% over 2020 and establishing a new high-water mark in the Company's history. The shift to a marketplace strategy was originally announced as part of the Company's 2020 Financial Results.
Full financial details will be disclosed in IOU's official 2021 Annual Financial Results to be released in April.
IOU Financial Inc. is a wholesale lender that provides quick and easy access to growth capital to small businesses through a network of preferred brokers across the US and Canada. Built on its proprietary IOU360 technology platform that connects underwriters, merchants and brokers in real time, IOU Financial has become a trusted alternative to banks by originating over US$1 billion in loans to fund small business growth since 2009. IOU trades on the TSX Venture Exchange under the symbol IOU (TSXV: IOU), and on the US OTC markets as IOUFF. To learn more about IOU Financial's corporate history, financial products, or to join our broker network please visit www.IOUFinancial.com.
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.