Business NewsMarketWire • FinTech Ventures Fund, LLLP Announces Acquisition of Shares of IOU Financial Inc.

FinTech Ventures Fund, LLLP Announces Acquisition of Shares of IOU Financial Inc.

FinTech Ventures Fund, LLLP Announces Acquisition of Shares of IOU Financial Inc.

ATLANTA, GEORGIA--(Marketwired - Jan. 4, 2016) - FinTech Ventures Fund, LLLP ("FinTech"), announced today pursuant to National Instrument 62-103 The Early Warning System and Related Take-Over Bid and Insider Reporting Issues that it has acquired ownership of 8,878,905 common shares ("Common Shares") of IOU Financial Inc. ("IOU"), pursuant to a Share Purchase Agreement dated December 31, 2015, between FinTech and Qwave Capital LLC ("Qwave"). FinTech is a newly created fund designated for investment into alternative lenders, which is managed by Qwave. The Common Shares purchased represent approximately 14.41% of the issued and outstanding Common Shares of IOU. Each of the purchased Common Shares was acquired by FinTech from Qwave for a purchase price of CDN$0.50 per Common Share, for aggregate consideration of CDN$4,439,452.50. In addition to the purchased Common Shares, FinTech owns CDN$1,000,000 in principal amount of convertible unsecured subordinated debentures (the "Debentures") of IOU. The Debentures are convertible at their holders' option into Common Shares at a price of $0.75 per Common Share, representing a conversion rate of 1,333.33 Common Shares for each $1,000 principal amount of Debentures. If all Debentures owned by FinTech were fully converted, FinTech would exercise ownership, control or direction, over 10,212,238 Common Shares, representing 16.22% of IOU's then issued and outstanding Common Shares.

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