IOU Financial announces $3.5M financing led by FinTech

Montreal (pcJ News Briefs) – IOU Financial Inc. (TSX-V: IOU), an online lender to small businesses in the United States and Canada, intends to complete a private placement of up to 17,500,000 common shares at $0.20 per share for gross proceeds of up to $3.5 million.

Up to $1.5 million of the offering will brokered by Haywood Securities Inc. The remaining portion will be non-brokered.

Net proceeds will be used primarily by IOU Financial to finance small business loans in the company’s target markets of the United States and Canada and for general corporate purposes.

IOU Financial said that Fintech Ventures Fund LLLP, an entity controlled by Serguei Kouzmine, a director of the company, will subscribe for approximately up to 7,500,000 shares for gross proceeds of approximately up to $1.5 million on a non-brokered basis.

FinTech Ventures Fund currently beneficially owns or controls 6,005,757 common shares, representing approximately 8.52% of the issued and outstanding common shares, or 7,339,087 shares, representing approximately 10.23% of the issued and outstanding shares, calculated on a partially diluted basis assuming the full conversion of all convertible debentures beneficially owned or controlled by Fintech.

After the completion of the offering, Fintech will beneficially own or control approximately up to 15.36% of the issued and outstanding common Shares (up to 16.62% calculated on a partially diluted basis assuming the full conversion of all convertible debentures beneficially owned or controlled by Fintech).

On April 19, 2017, FinTech Ventures Fund sold 7,000,000 IOU common shares by way of a private agreement.

photo credit: Daria Głodowska via pixabay

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