The company continues to reduce corporate debt after seeing loan originations in 2021 increase by more than 90% compared to 2020.
MONTREAL, March 22, 2022 /PRNewswire/ – IOU FINANCIAL INC. (“IOU” or “the Company”) (TSXV: IOU), a leading online small business lender (IOUFinancial.com), today announced that it is acquiring approximately $1.2 million of its convertible debentures in the capital of the Company (the “Debentures”) at par. These transactions are carried out pursuant to repurchase agreements entered into with individual holders of debentures.
Today’s movement to redeem $1.2 million of debentures brings total redemptions to approximately $4.9 million over the past 12 months, leaving approximately $6.8 million of the unpaid principal value of the debentures which mature December 2023.
“The success of IOU’s market strategy announced in 2021 allows us to grow faster than before,” said Robert Gloer, President and CEO. “We’re proud of the team that broke new origination records and gave us the added leeway to further reduce corporate debt.”
IOU was born around $161.5 million loans in 2021, representing an increase of more than 90% compared to 2020 and setting a new record in the history of the Company. The shift to a market strategy was originally announced as part of the company’s 2020 financial results.
Full financial details will be disclosed in IOU’s official 2021 annual financial results to be released in April.
About IOU Financial Inc.
IOU Financial Inc. is a wholesale lender that provides quick and easy access to growth capital for small businesses through a network of preferred brokers in the United States and Canada. Leveraging its proprietary IOU360 technology platform that connects underwriters, traders and brokers in real time, IOU Financial has become a trusted alternative to banks by creating more 1 billion US dollars in loans to finance the growth of small businesses since 2009. IOU trades on the TSX Venture Exchange under the symbol IOU (TSXV: IOU) and on the American over-the-counter markets under the name IOUFF. To learn more about IOU Financial’s corporate history, financial products, or to join our network of brokers, please visit www.IOUFinancial.com.
Certain information in this press release may contain forward-looking statements that involve important known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond IOU’s control, including, but not limited to, the impact of general economic conditions, industry conditions, dependence on regarding regulatory and shareholder approvals, the execution of definitive documentation and the uncertainty of obtaining additional financing. Readers are cautioned that the assumptions used in the preparation of this information, while believed to be reasonable at the time of preparation, may prove to be imprecise and, accordingly, undue reliance should not be placed on any forward-looking statements. IOU undertakes no obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
View original content: https://www.prnewswire.com/news-releases/iou-financial-announces-record-loan-originations-of-us161-5-million-in-2021-and-the-repurchase-of – approximately-1-2-million-convertible-debentures-301508231.html
SOURCE IOU Financial Inc.