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IOU gets OK to amend 10% convertible subordinated debentures
By Wendy Van Sickle
Columbus, Ohio, Aug. 2 – IOU Financial Inc. received holder approval to amend the terms of its 10% convertible subordinated debentures, according to a press release issued on Friday.
Approval of the amendments was received from the holders of at least 66 2/3% of the debentures, as required for passage.
IOU intends to amend the terms of the convertibles by:
• Extending the maturity date to Dec. 31, 2023 from Dec. 31, 2020;
• Eliminating the condition that the convertibles be redeemable by IOU only when the current market price is 125% of the conversion price;
• Modifying the conversion price to C$0.75 per share from C$0.50 per share;
• Eliminating IOU's right to carry out a forced conversion of the convertibles; and
• Eliminating IOU's right to redeem or repay the principal amount of the convertibles with freely tradeable shares.
The conversion period, which is set to expire at 5 p.m. ET on the last business day prior to Dec. 31, 2020, will remain.
The amendments have been approved by the TSX Venture Exchange.
The convertibles were issued by way of private placement under a trust indenture dated Nov. 2, 2015.
The Montreal company is an online lender for small businesses in the United States.
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