MONTREAL, April 24, 2013 /CNW Telbec/ - IOU Financial Inc. (CNSX: IOU) ("IOU" or the "Company") announced today an update on its
activities.
During the first quarter of this year, IOU announced that it had closed
the final tranche of its over-subscribed $5 million private placement
of Units comprised of Class B Common Shares and Warrants to purchase
Class B Common Shares, for total gross proceeds of approximately $6.1
million. IOU increased the amount to be raised by its private placement
in response to investor demand.
During the same quarter, IOU also announced that it had renewed its
secured credit facility for a one-year term (subject to the execution
of certain closing documents). The credit facility will be increased
over three fold to US$10.0 million from the current limit of CDN$3.0
million. The lender will have an option to extend the contract by an
additional year provided it increases the credit facility to US$15.0
million.
With these financings in place, IOU will be able to respond to the
significant growth in applications it has recently experienced. During
the first quarter of this year, IOU processed approximately US$36.6
million in loan applications. This compares to a total of US$49.4
million in all of 2012, and US$17.5 million in all of 2011.
Additionally, during the first quarter of this year, IOU originated
approximately US$8.7 million in loans. This compares to a total of
US$11.5 million in all of 2012 and US$2.4 million in all of 2011.
About IOU Financial
IOU Financial, via its U.S. subsidiary, IOU Central, 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 Central'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 $100,000 to
qualified applicants within a few business days, with affordable
charges favorable to cash-flow management. IOU Central's speed and
transparency make it a trusted alternative to banks. To learn more
visit: www.ioucentral.com
CAUTION REGARDING FORWARD-LOOKING STATEMENTS
Certain statements contained in this news release are forward-looking
and are subject to numerous risks and uncertainties, known and unknown.
For information identifying known risks and uncertainties, relating to
liquidity risks, risks inherent in growing a new business, dependence
on third-party service providers, credit risks, competition, regulatory
risk, and assumptions that could cause the company's actual results to
differ from current expectations, please refer to the section "Risks
and Uncertainties" of IOU's most recent Management's Discussion and
Analysis ("MD&A"), which may be consulted at www.sedar.com. IOU
cautions that the foregoing list of factors is not exhaustive. The
forward-looking statements presented in the MD&A reflect IOU's
expectations as at the date of the MD&A. IOU Financial does not
undertake any obligation to update publicly or to revise any such
forward-looking statements, unless required by applicable legislation
or regulation.
The Canadian National Stock Exchange (CNSX Markets Inc.) has neither
approved nor disapproved of the contents of this press release.
SOURCE: IOU FINANCIAL INC.
