MONTREAL, July 25, 2019 /CNW Telbec/ - IOU Financial Inc. ("IOU") (TSXV: IOU) is announcing that, subject to the definitive approval of the TSX Venture Exchange (the "TSX-V"), it intends to amend the terms of its series of 10% convertible unsecured subordinated debentures, which were issued by way of private placement pursuant to a trust indenture dated November 2, 2015 (the "Debentures").

IOU intends to amend the terms of the Debentures by:

a)  extending the maturity date of the Debentures from December 31, 2020 to December 31, 2023;
b)  eliminating the condition that the Debentures be redeemable by IOU only when the current market price is 125% of the conversion price;
c)  modifying the conversion price of the Debentures from $0.75 per share to $0.50;
d)  eliminating IOU's right to carry out a forced conversion of the Debentures; and
e)  eliminating IOU's right to redeem or repay the principal amount of the Debentures with freely tradeable shares.

The conversion period for the Debentures, which is currently set to expire at 5:00 p.m. on the last business day prior to December 31, 2020, will remain unchanged.

In addition to being subject to the definitive approval of the TSX-V, the amendment is subject to approval by the holders of 66 2/3% of the Debentures.

About IOU Financial Inc.

IOU Financial Inc. provides small businesses throughout the U.S. and Canada access to the capital they need to seize growth opportunities quickly. Typical customers include medical and dental practices, grocery and retail stores, salons, gas stations, auto repair shops, restaurants, trade contractors and manufacturing 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. IOU Financial allows these businesses to apply for six, nine, twelve, fifteen and eighteen-month term loans of up to US$500,000 to qualified U.S. applicants ($100,000 in Canada) within a few business days, with affordable charges favorable to cash-flow management. Its speed and transparency make IOU Financial a trusted alternative to banks. To learn more visit: 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.

View original content: http://www.newswire.ca/en/releases/archive/July2019/25/c7597.html