MONTRÉAL, Oct. 13, 2016 /CNW Telbec/ - IOU Financial Inc. ("IOU Financial" or the
"Company") (TSXV: IOU) is pleased to announce that it closed on the date hereof the first tranche of its previously
announced private placement of common shares (the "Common Shares") for total gross proceeds of approximately $1.2 million. The Common Shares were offered to investors at a price of $0.27 per
Common Share.
Insiders of IOU Financial (or entities related to, or controlled by, them), being Philippe
Marleau, CEO and director, Serguei Kouzmine, director, David John
Kennedy, CFO, Yves Roy, director, and Charles Marleau, each
participated in the private placement and subscribed a total of 2,944,444 Common Shares for total gross proceeds of approximately
$795,000.
The issuance of securities to such persons may be considered a related party transaction within the meaning of Regulation 61-101
respecting protection of minority securityholders in special transactions. However, the private placement is exempt from the
valuation and minority approval requirements provided under such regulation since the fair market value of the private placement to
related parties is less than 25 per cent of the market capitalization of IOU Financial. The board of directors of IOU Financial has
approved the private placement. Messrs. Marleau, Kouzmine and Roy declared their interest prior to the approval by the board of
directors of IOU Financial and abstained from voting thereon.
A material change report in respect of this related party transaction will be filed by the Company but could not be filed
earlier than 21 days prior to the closing of the private placement due to the fact that the private placement was still subject to
regulatory approval and the terms of the participation of certain of the non-related parties and the related parties in the private
placement were not confirmed.
This news release shall not constitute an offer to sell nor the solicitation of an offer to buy nor shall there be any
securities of IOU Financial offered in any jurisdiction in which such offer, solicitation or sale would be unlawful. The Common
Shares will be offered on a private placement basis in Canada and only to "accredited investors",
as such term is defined under applicable Canadian securities laws.
THE SECURITIES WILL NOT BE REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933 (THE "1933 ACT") AND MAY NOT BE OFFERED OR
SOLD IN THE UNITED STATES ABSENT REGISTRATION UNDER OR AN APPLICABLE EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE 1933 ACT.
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 Financial including, but not limited to, the impact of general economic conditions, industry
conditions, dependence upon regulatory approval, 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 Financial does not assume any obligation to update or revise its forward-looking statements,
whether as a result of new information, future events, or otherwise.
The TSX-V has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
SOURCE IOU FINANCIAL INC.
