/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/
MONTREAL, Dec. 18, 2012 /CNW Telbec/ - IOU Financial Inc. ("IOU Financial") (CNSX: IOU) announced today that it intends to carry out a private
placement of Units for up to $5,000,000 with a syndicate of exempt
market dealers. Each "Unit" will be comprised of one Class B Common
Share of IOU Financial (a "Share") and ¾ of a warrant to purchase one Share for an eighteen-month term.
It is intended that each Unit be priced at $0.40. IOU Financial intends
to raise no less than $2,000,000 and up to $5,000,000, subject to its
right to increase the offering at its sole discretion. The net proceeds
of the proposed private placement will be used by IOU Financial to fund
the growth of its US-based operating subsidiary IOU Central Inc. and
for general corporate purposes.
Completion of the proposed private placement is subject to customary
closing conditions for transactions of this nature, including the
approval of the CNSX. The closing thereof is expected to take place
during the first quarter of 2013, but may occur if warranted, in
This news release shall not constitute an offer to sell nor the
solicitation of an offer to buy nor shall there be any securities of
IOU Financial offered in any jurisdiction in which such offer,
solicitation or sale would be unlawful. The Units will be offered on a
private placement basis in Canada and only to "accredited investors",
as such term is defined under applicable Canadian securities laws.
THE SECURITIES WILL NOT BE REGISTERED UNDER THE U.S. SECURITIES ACT OF
1933 (THE "1933 ACT") AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES ABSENT
REGISTRATION UNDER OR AN APPLICABLE EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE 1933 ACT.
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 Financial 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 Financial 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.
SOURCE: IOU FINANCIAL INC.
For further information:
IOU Financial Inc.
President & CEO
Tel : 514-789-0694
Email : firstname.lastname@example.org