IOU FINANCIAL ANNOUNCES THE REPURCHASE OF APPROXIMATELY $1.1 MILLION OF CONVERTIBLE DEBENTURES

Rhea-AI Summary

IOU Financial Inc. (TSXV: IOU) has announced the repurchase of approximately $1.1 million in convertible debentures, bringing the total repurchases in 2022 to $3.5 million. This reduces the outstanding principal of debentures to $4.5 million, maturing on December 31, 2023. The company aims to lower corporate debt while enhancing loan originations, which recently hit a record US$74.2 million in Q3 2022. CEO Robert Gloer emphasized the commitment to operational scalability amidst ongoing positive earnings.

Positive

• Total convertible debenture repurchases of $3.5 million in 2022 indicate strong cash management.
• Record loan originations of $74.2 million in Q3 2022 signify growth and demand.
• Reduction of outstanding debentures to $4.5 million enhances financial stability.

Negative

• None.

Company continues to leverage strong cash position to reduce debt, bringing year-to-date total to $3.5 million of convertible debentures repurchased.

MONTREAL, Dec. 1, 2022 /CNW Telbec/ - IOU FINANCIAL INC. ("IOU" or "the Company") (TSXV: IOU), a leading online lender to small businesses (IOUFinancial.com), announced today that it is repurchasing approximately $1.1 million of its convertible debentures in the capital of the Company (the "Debentures") at par. Such transactions are being carried out pursuant to repurchase agreements entered into with individual holders of Debentures.

Today's move to repurchase $1.1 million of Debentures brings the total year-to-date repurchases to $3.5 million and reduces the outstanding principal value of Debentures to approximately $4.5 million. The Debentures mature on December 31, 2023.

"We are pleased to continue delivering on our commitment to reduce corporate debt while growing loan originations and investing in long-term operational scalability" said Robert Gloer, President and CEO. 

The Company recently reported Q3 2022 Financial Results highlighting an all-time record US$74.2 million in quarterly loan originations and 6 consecutive quarters of positive earnings. 

About IOU Financial Inc.

IOU Financial Inc. is a wholesale lender that provides quick and easy access to growth capital to small businesses through a network of preferred brokers across the US and Canada. Built on its proprietary IOU360 technology platform that connects underwriters, merchants and brokers in real time, IOU Financial has become a trusted alternative to banks by originating over US$1 billion in loans to fund small business growth since 2009. IOU trades on the TSX Venture Exchange under the symbol IOU (TSXV: IOU), and on the US OTC markets as IOUFF. To learn more about IOU Financial's corporate history, financial products, or to join our broker network please 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 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.

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SOURCE IOU Financial Inc.

FAQ

What is the recent convertible debenture repurchase by IOU Financial?

IOU Financial has repurchased approximately $1.1 million in convertible debentures, totaling $3.5 million in 2022.

How does the debenture repurchase impact IOU Financial's finances?

The repurchase reduces the outstanding principal of debentures to $4.5 million, improving financial stability.

What are the loan origination results for IOU Financial in Q3 2022?

IOU Financial reported record loan originations of $74.2 million in Q3 2022.

What is the maturity date for IOU Financial's convertible debentures?

The convertible debentures mature on December 31, 2023.