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:
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extending the maturity date of the Debentures from December 31, 2020 to December 31, 2023;
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eliminating the condition that the Debentures be redeemable by IOU only when the current market price is 125% of the conversion price;
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modifying the conversion price of the Debentures from USD 0.75 per share to USD 0.50;
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eliminating IOU's right to carry out a forced conversion of the Debentures; and
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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...
