MONTREAL, June 15, 2015 /CNW Telbec/ - IOU FINANCIAL INC. ("IOU Financial" or the "Company") (TSXV: IOU), a leading online lender to small businesses, notes the announcement by Qwave Capital LLC ("Qwave") of its intention to make a formal offer to acquire 30,000,000 outstanding common shares of IOU Financial, representing approximately 55.9% of the outstanding common shares of IOU Financial, for $0.50 per common share.
IOU Financial wishes to highlight that the announcement made by Qwave does not constitute a formal offer to acquire the common shares of IOU Financial but is merely the announcement of an intention to carry out an unsolicited partial bid. There is no assurance that a formal offer will be made by Qwave.
The Board of IOU Financial continues to believe in IOU Financial's current business plan, which has allowed IOU Financial to rank as the 32nd fastest growing company in Canada on the 2014 PROFIT 500 list, with a five-year revenue growth of 1,924%. This being said, the Board will continue to evaluate opportunities, given the dynamic nature of IOU Financial's industry, and remains committed to creating significant value for shareholders.
If and when a formal offer is made by Qwave, the Board will further communicate its views to shareholders of IOU Financial by issuing a news release and filing and mailing a circular to them within the statutory time period. In the interim, the Board advises shareholders not to take any action with respect to Qwave's unsolicited partial bid until the Board and its advisors have evaluated same and the Company's other alternatives, and the Company has made a statement with respect thereto.
About IOU Financial Inc.
IOU Financial 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 Financial'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 $150,000 to qualified applicants within a few business days, with affordable charges favorable to cash-flow management. IOU Financial's speed and transparency make it a trusted alternative to banks. To learn more visit: www.ioufinancial.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 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.
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: Philippe Marleau, Chief Executive Officer, (514) 789-0694 ext. 225