IOU Financial announces conclusion of a loan agreement
MONTREAL, March 8, 2012 /CNW Telbec/ - IOU Financial Inc. ("IOU") (CNSX: IOU) announced today that it has entered into a loan agreement (the "Loan Agreement") as of March 7, 2012 with Gus-Kan Inc. ("GKI"), an Ontario-based corporation, and The Marleau Capital Corporation ("MCC") pursuant to which GKI agreed to lend to IOU a principal amount of CAD$300,000 upon the issuance by IOU of a promissory note. Pursuant to the Loan Agreement, GKI will receive 12,000 warrants (the "Warrants") to purchase one Class B common shares of IOU at CAD$0.50 within a two-year period of its issuance in favour of GKI. The Warrants will be issued subject to the receipt of all regulatory approvals in connection thereof. The obligations of IOU under the Loan Agreement shall be guaranteed by MCC, as majority shareholder and related party of IOU.
About IOU Financial Inc.
IOU, through its subsidiaries IOU Central Inc., a private corporation existing under the laws of Canada, and IOU Central Inc., a private corporation existing under the laws of Delaware, operates an Internet-based lending platform aimed at small businesses throughout the United States that IOU believes are underserved by banks today. To learn more visit: www.ioucentral.com
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 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 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 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 CNSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.For further information:
IOU Financial Inc.
President & CEO
IOU Financial Inc.