MONTREAL, Jan. 26, 2012 /CNW Telbec/ - IOU Financial Inc. (CNSX: IOU)
("IOU" or the "Company") announced today that it has engaged Paradox
Public Relations Inc. (hereinafter, "Paradox") as strategic investor
relations consultants to the Company. Paradox will focus on developing
and expanding IOU's communications with the investment community
through a comprehensive investor relations program.
Paradox is a Montreal-based investor relations agency founded in 2001
which provides a wide range of services to companies to help broaden
investor exposure and develop a shareholder following.
Paradox has been engaged pursuant to a 24-month arm's length agreement
effective January 26, 2012 (hereinafter, the "Agreement"). The
Agreement may be terminated by either party upon 30 days notice. In
consideration for their services, IOU has agreed to pay to Paradox fees
in the amount of $6,500 per month. In addition, Paradox has been
granted 250,000 stock options of class B common shares of IOU
exercisable at a price of $0.45 per class B common share, for a period
of two years, provided that options shall expire upon the termination
of the Agreement. The options shall vest and become exercisable over a
period of 12 months, at a rate of 25% at the end of each quarter.
About IOU Financial
IOU Financial Inc., via its U.S. subsidiary, IOU Central Inc. ("IOU"),
operates an online lending platform which services store-front
businesses (traditional and internet-based) throughout the United
States, that it believes are under served by banks today. IOU allows
these businesses to obtain loans of up to $100,000, without having to
resort to more expensive factoring type products. Loan applications
are done online and businesses can receive funding in as little as two
business days. The Company's approach to lending is unique. Its
underwriting model looks holistically at a business' financial
realities, with an emphasis on its day-to-day cash flow trends, while
its micro-payment system allows it to service the loans on a daily
basis for easy cash flow management. To learn more visit: www.ioucentral.com
Based in Montreal, Paradox has provided investor relations services to
micro cap and small cap listed public companies over the past 10 years.
CAUTION REGARDING FORWARD-LOOKING STATEMENTS
Certain statements contained in this news release are forward-looking
and are subject to numerous risks and uncertainties, known and unknown.
For information identifying known risks and uncertainties, relating to
liquidity risks, risks inherent in growing a new business, dependence
on third-party service providers, credit risks, competition, regulatory
risk, and assumptions that could cause the company's actual results to
differ from current expectations, please refer to the section "Risks
and Uncertainties" of IOU's most recent Management's Discussion and
Analysis ("MD&A"), which may be consulted at www.sedar.com. IOU cautions that the foregoing list of factors is not exhaustive. The
forward-looking statements presented in the MD&A reflect IOU's
expectations as at the date of the MD&A. IOU Financial does not
undertake any obligation to update publicly or to revise any such
forward-looking statements, unless required by applicable legislation
The Canadian National Stock Exchange (CNSX Markets Inc.) has neither
approved nor disapproved of the contents of this press release.
SOURCE IOU Financial Inc.
For further information:
Chief Executive Officer
(514) 789-0694 ext. 225
Chief Financial Officer
(514) 789-0694 ext. 298