BANKING AND CREDIT NEWS-August 1, 2019-IOU Financial intends to amend convertible debentures
(C)2019 M2 COMMUNICATIONS http://www.m2.com
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"), the company said.
IOU intends to amend the terms of the Debentures by:
extending the maturity date of the Debentures from December 31, 2020 to December 31, 2023;
eliminating the condition that the Debentures be redeemable by IOU only when the current market price is 125% of the conversion price;
modifying the conversion price of the Debentures from USD 0.75 per share to USD 0.50;
eliminating IOU's right to carry out a forced conversion of the Debentures; and
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...