pcNewsWire – MONTRÉAL – May 25, 2017 – IOU Financial Inc. (TSX-V: IOU) has closed the brokered portion of its previously announced private placement of 6,075,000 common shares at $0.20 per share for gross proceeds of approximately $1.2 million.
Haywood Securities Inc. acted as agent under this portion of the private placement. IOU Financial paid Haywood a commission of $90,575 and issued Haywood and other intermediaries a total of 452,875 compensation options, entitling Haywood and such intermediaries to purchase up to 452,875 shares at the offering price for a 24 month period after the date hereof.
The total gross amount raised under the private placement is approximately $3.5 million, representing a total of 17,457,400 Common Shares.
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.
An insider of IOU Financial, Evan Price, director, participated in the brokered portion of the private placement, subscribing for a total of 50,000 Common Shares for total gross proceeds of $10,000.