MONTREAL, May 23, 2014 /CNW Telbec/ - IOU Financial Inc. (TSXV: IOU) ("IOU Financial" or the "Company") is pleased to announce the results of its Annual General and Special Meeting of Shareholders (the "Meeting") held on May 23rd, 2014.
At this Meeting, the Company's shareholders voted in favour of the following resolutions:
- the election of each of Guy Charette, David Cynn, Philippe Marleau and Evan Price as directors of the Company to hold office until the next annual meeting of shareholders or until their successors are elected or appointed;
- the appointment of BDO Canada LLP, Certified Professional Accountants, as auditors of the Company until the next annual meeting of shareholders or until their successors are appointed;
- the approval of the Company's rolling 10% Stock Option Plan, as required annually by the policies of the TSX Venture Exchange;
- the approval of the sale of up to $250 million of loans over the next five years to the Palos/IOU High Yield Fund managed by Palos Management Inc.; and
- the amendment to the Company's Articles of Incorporation to restate its share capital in order to simplify its current equity capital structure, by canceling some authorized but non issued classes of shares and by creating a new class of shares designated as Common Shares (the "Common Shares"). Upon the issuance of the Certificate of Amendment in respect of the Articles of Incorporation of the Company, the Company proposes to convert each one of the Class B Common Shares issued and outstanding immediately prior to the issuance of the Certificate of Amendment into one Common Share (the "Share Conversion").
Full details of the matters voted upon at the Meeting are set forth in the Management Proxy Circular (the "Circular") dated April 17, 2014 which was prepared and mailed in connection with the Meeting and is available under the Company's profile on SEDAR at www.sedar.com.
Procedure for Share Conversion
Contrary to what was indicated in the Circular, upon implementation of the Share Conversion, no action will be required on the part of the shareholders. Shareholders will not be required to exchange their share certificates representing Class B Common Shares for share certificates representing Common Shares and, upon completion of the Share Conversion, all certificates representing Class B Common Shares prior to the completion of the Share Conversion will cease to represent such Class B Common Shares and will automatically represent an equivalent number of Common Shares. Similarly, no action will be required on the part of shareholders who hold Class B Common Shares through a bank, broker or other nominee.
Each shareholder holding Class B Common Shares on the date of the Share Conversion will be entitled to exchange such holder's certificates formerly representing Class B Common Shares for certificates representing Common Shares upon delivering such certificates to Computershare Investor Services Inc. ("Computershare"), at its office in Montréal, along with such other documents as Computershare may require.
About IOU Financial Inc.
IOU Financial, via its U.S. subsidiary, IOU Central, provides small businesses throughout the U.S. access to the capital they need to seize growth opportunities quickly. Typical customers include medical and dental practices, grocery and retail stores, restaurant and hotel franchisees and e-commerce companies. In a unique approach to lending, IOU Central's advanced, automated application and approval system accurately assesses applicants' financial realities, with an emphasis on day-to-day cash flow trends. It makes loans of up to $100,000 to qualified applicants within a few business days, with affordable charges favorable to cash-flow management. IOU Central's speed and transparency make it a trusted alternative to banks. 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.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: IOU FINANCIAL INC.
For further information:
Chief Executive Officer
(514) 789-0694 ext. 225
Chief Financial Officer
(514) 789-0694 ext. 298