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 June 30, 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. The total reduction in interest expenses to IOU, should the Repurchases be completed, will amount to approximately $500,000, representing the interest savings for the period July 1, 2021 to the maturity date of December 31, 2023. “We adapted to extreme challenges to continue delivering the same level of service that our stakeholders have come to expect, and I thank them for their confidence in IOU as we support the recovery of small businesses across the US” said Robert Gloer, President. Individual holders of the Debentures who are interested in participating in the Repurchases are invited to contact Benjamin Yi (firstname.lastname@example.org) or David Kennedy (email@example.com) indicating their interest.
During the month of March 2021, IOU’s loan originations exceeded US$12.1 million representing the highest monthly loan origination volume since the beginning of the pandemic. In addition, IOU’s corporate cash position as of March 31, 2021 was approximately $11.5 million. IOU Financial continued to fund small businesses in the US throughout the pandemic, relying on its proprietary IOU360 technology platform and wealth of underwriting data to make adjustments in real time as the pandemic evolved.
Story continues The move to repurchase corporate debt comes after a year of strategic initiatives as part of IOU’s Pandemic Resilience Plan that focussed on reducing corporate expenses while reaffirming commitments from its diverse portfolio of funding sources and capitalizing on new opportunities to continue to support small businesses in 2020:
Certain information set forth in this news release may contain forward-looking statements. Forward looking statements are statements, other than statements of historical fact, that address or discuss activities, events or developments that IOU expects or anticipates may occur in the future. These forward looking statements can be identified by the use of words and phrases such as “anticipates”, “believes”, “estimates”, “expects”, “may”, “plans”, “projects”, “should”, “will”, “intends”, “seeks”, “allows”, “creates a path for”, “puts in a position to” or the negative thereof or other variations thereon. In particular, this news release contains forward-looking statements including, without limitation, with respect to the closing of the Offering and the Company’s future profitability. These forward-looking statements are subject to and involve substantial known and unknown 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 obtaining of the regulatory approval relating to the Offering, the uncertainty of obtaining additional financing, risks related to the Company’s incapacity to execute on its business plan, dependence on third-party service providers, competition, dependence on key personnel, security and confidentiality risk, technological development risk, IT disruptions, maintenance of client relationships, and litigation risk. No assurance can be given that any of the events anticipated by such statements will occur or, if they do occur, what benefit IOU will derive from them. 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. Additional information concerning these and other factors can be found beginning on page 22 under the heading “Risks and Uncertainties” in IOU’s management’s discussion and analysis dated November 23, 2020, which is available under IOU’s profile on SEDAR at www.sedar.com. 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. Forward Looking Statements
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 a proprietary technology platform that connects underwriters, merchants and brokers in real time, IOU Financial has become a trusted alternative to banks by underwriting over US$850 million in loans to fund small business growth since 2009. To learn more about IOU Financial’s corporate history, financial products, or to join our broker network please visit www.IOUFinancial.com. About IOU Financial Inc.
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- IOU Financial announces intention to repurchase up to $ 2 million of convertible debentures
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