IOU intends to repurchase an additional $2 million of convertible debentures, increasing the total announced and intended repurchases up to $4.3 million in 2021.
MONTREAL, Sept. 3, 2021 /PRNewswire/ - IOU FINANCIAL INC. ("IOU" or "the Company") (TSXV: IOU), a leading online lender to small businesses (IOUFinancial.com), announced today that, pursuant to its intention to repurchase up to $0.5 million of its convertible debentures announced on June 16, 2021, it is repurchasing approximately $0.4 million of its convertible debentures in the capital of the Company (the "Debentures") at a discount per $1,000 of aggregate principal amount per Debenture. Such transactions are being carried out pursuant to repurchase agreements entered into with individual holders of Debentures. Furthermore, IOU intends to repurchase up to an additional $2 million of its Debentures at a discount per $1,000 of aggregate principal amount per Debenture ("the Repurchases") by no later than October 31, 2021.
Today's move to repurchase $0.4 million of its convertible debentures and intention to repurchase an additional $2 million come after the Company announced the repurchase of approximately $1.9 million in convertible debentures on June 16, 2021. In total, the announced and intended repurchases of convertible debentures in 2021 amount to $4.3 million.
"IOU's strong cash position gives us the opportunity to reduce corporate debt as well as interest expense going forward and capitalize on the continuing economic recovery," said Robert Gloer, CEO. "We are excited to be in a position to support the growth of small businesses."
With respect to the intended repurchase of an additional $2 million in convertible debentures announced today, IOU will seek to repurchase such Debentures pursuant to repurchase agreements to be entered into with individual holders of Debentures and to close the Repurchases by no later than October 31, 2021. There can be no assurances that any Debentures will be so repurchased, that all Debentures that an individual holder wishes to be repurchased will so be, or that the Repurchases will be completed by such date.
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