Offering conducted by Palos to fund business loans, corporate purposes
By Devika Patel
Knoxville, Tenn., Sept. 25 – IOU Financial Inc. said it plans a C$10 million private placement of convertible unsecured subordinated debentures.
The 10% debenture matures on Dec. 31, 2020. It converts to common stock at a conversion rate of 1,333.33 shares per C$1,000 of debentures, which equals a conversion price of C$0.75, a 59.58% premium to C$0.47, the Sept. 24 closing share price. The company may force conversion after Dec. 31, 2018.
The debentures will be sold at par of C$1,000 on a best-efforts basis by agent Palos Management Inc.
Settlement is expected Nov. 1.
Proceeds will be used to finance small business loans and for general corporate purposes.
The Montreal company is an online lender for small businesses in the United States.
| Issuer: | IOU Financial Inc.
|
| Issue: | Convertible unsecured subordinated debentures
|
| Amount: | C$10 million
|
| Maturity: | Dec. 31, 2020
|
| Coupon: | 10%
|
| Price: | Par of C$1,000
|
| Conversion premium: | 59.58%
|
| Conversion price: | C$0.75
|
| Call: | After Dec. 31, 2018
|
| Warrants: | No
|
| Agent: | Palos Management Inc.
|
| Pricing date: | Sept. 25
|
| Settlement date: | Nov. 1
|
| Stock symbol: | TSX Venture: IOU
|
| Stock price: | C$0.47 at close Sept. 24
|
| Market capitalization: | C$24.16 million
|
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